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Foreign exchange market intervention and reserve accumulation in emerging Asia: Is there evidence of fear of appreciation?

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  • Pontines, Victor
  • Rajan, Ramkishen S.

Abstract

Asian central banks react more strongly to currency appreciations than depreciations and more to nominal effective exchange rates (NEERs) than to bilateral US dollar rates. This rationalizes the relative exchange rate stability and the sustained reserve accumulation in the region.

Suggested Citation

  • Pontines, Victor & Rajan, Ramkishen S., 2011. "Foreign exchange market intervention and reserve accumulation in emerging Asia: Is there evidence of fear of appreciation?," Economics Letters, Elsevier, vol. 111(3), pages 252-255, June.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:3:p:252-255
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    References listed on IDEAS

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