Monetary Policy Operations of Debtor Central Banks in MENA Countries
AbstractThe paper analyses the monetary policy operations of central banks in the Middle East and North Africa (MENA). We distinguish the pattern of monetary policy operations of the liquidity providing central banks of the large industrialized countries (creditor central banks) and the liquidity absorb-ing central banks of emerging market economies (debtor central banks). Many debtor central banks provide liquidity through foreign exchange intervention in reaction to foreign exchange inflows. If the respective liquidity expansion is regarded as a threat to domestic price and financial stability, liquidity is partly absorbed through sterilization operations. The paper finds that most MENA coun-tries are debtor central banks due to a general pattern of excessive liquidity creation as well as due to country specific reasons.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5474.
Date of creation: Oct 2007
Date of revision:
Emerging Markets; Debtor Central Banks; Foreign Exchange Inflows; Sterilization;
Other versions of this item:
- Schnabl, Gunther & Schobert, Franziska, 2007. "Monetary policy operations of debtor central banks in MENA countries," Working Papers 65, University of Leipzig, Faculty of Economics and Management Science.
- F31 - International Economics - - International Finance - - - Foreign Exchange
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-11-03 (Africa)
- NEP-ALL-2007-11-03 (All new papers)
- NEP-CBA-2007-11-03 (Central Banking)
- NEP-CWA-2007-11-03 (Central & Western Asia)
- NEP-MAC-2007-11-03 (Macroeconomics)
- NEP-MON-2007-11-03 (Monetary Economics)
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