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Transparency versus constructive ambiguity in foreign exchange intervention

Author

Listed:
  • Priscilla Chiu

    (Hong Kong Monetary Authority)

Abstract

Based on a survey of 10 central banks and a review of existing literature, this paper examines the choice between transparency versus ambiguity in central banks' foreign exchange intervention. Three case studies - Canada, Hong Kong SAR and Japan - are presented to highlight the problems facing central banks in this choice, and the changes that have been made to cope with those challenges.

Suggested Citation

  • Priscilla Chiu, 2003. "Transparency versus constructive ambiguity in foreign exchange intervention," BIS Working Papers 144, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:144
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    References listed on IDEAS

    as
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    3. Humpage, Owen F, 1999. "U.S. Intervention: Assessing the Probability of Success," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(4), pages 731-747, November.
    4. Mr. Charles Enoch, 1998. "Transparency in Central Bank Operations in the Foreign Exchange Market," IMF Policy Discussion Papers 1998/002, International Monetary Fund.
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    11. Peiers, Bettina, 1997. "Informed Traders, Intervention, and Price Leadership: A Deeper View of the Microstructure of the Foreign Exchange Market," Journal of Finance, American Finance Association, vol. 52(4), pages 1589-1614, September.
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