The Use of Foreign Exchange Swaps by Central Banks: A Survey

Author/Editor:

Catharina J. Hooyman

Publication Date:

August 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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:

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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