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Author Edison, Hali, author

Title Foreign exchange intervention and the Australian dollar : has it mattered? / Hali Edison, Paul Cashin, and Hong Liang
Published [Washington, D.C.] : International Monetary Fund, [2003]
©2003
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Description 1 online resource (29 pages) : illustrations
Series IMF working paper ; WP/03/99
IMF working paper ; WP/03/99
Summary Since the Australian dollar was floated in December 1983, the Australian central bank (Reserve Bank of Australia) has actively intervened in the foreign exchange market. Using daily exchange rate and official intervention data from January 1984 to December 2001, this paper examines what effects, if any, foreign exchange operations by the Reserve Bank of Australia (RBA) have had on the level and volatility of the Australian dollar exchange rate. First, using an event study we evaluate the effectiveness of intervention by examining its direct effect on the level of the exchange rate. We find that over the period 1997-2001, the RBA has had some success in its intervention operations, by moderating the depreciating tendency of the Australian dollar. Second, we investigate the effects of RBA intervention policies on exchange rate volatility over the floating rate period. Our results indicate that intervention operations tend to be associated with an increase in exchange rate volatility, which suggests that official intervention may have added to market uncertainty. Overall, the effects of RBA intervention are quite modest on both the level and the volatility of the Australian dollar exchange rate
Bibliography Includes bibliographical references (pages 27-29)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Banks and banking, Central -- Australia.
Currency question -- Australia.
Foreign exchange rates -- Australia.
Intervention (Federal government) -- Australia.
Monetary policy -- Australia.
Form Electronic book
Author Cashin, Paul, author
Liang, Hong, author
International Monetary Fund. Asia and Pacific Department.
International Monetary Fund. Research Department.
ISBN 1281602078
1451898002
9781281602077
9781451898002