The Use of Foreign Exchange Swaps by Central Banks: A Survey
Summary:
The paper discussed the use of foreign exchange swaps by central banks. Such use has aimed at affecting domestic liquidity, managing foreign exchange reserves, and stimulating domestic financial markets. It discusses these different uses and present evidence for a selected group of countries. The paper cautions about the use of foreign exchange swaps to defend a particular exchange rate at a time when foreign exchange reserves are under pressure. It notes, finally, that use of foreign exchange swaps by central banks has been losing importance.
Series:
Working Paper No. 1993/064
Subject:
Banking Currencies Currency markets Currency swaps Exchange rates Financial markets Foreign exchange Money
Notes:
Also published in Staff Papers, Vol. 41, No. 1, March 1994.
English
Publication Date:
August 1, 1993
ISBN/ISSN:
9781451848489/1018-5941
Stock No:
WPIEA0641993
Pages:
30
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