The Efficacy of Foreign Exchange Market Intervention in Malawi
AbstractThe Malawi Kwacha was floated in February 1994. However, the Reserve Bank of Malawi has actively intervened in the foreign exchange market. Both the levels and volatility of the exchange rate have changed so much between January 1995 and December 2003, perhaps connoting that the market is not working so well or else a result of impromptu management. Using the daily exchange rate and official intervention data from January 1995 to December 2003 the paper is intended to examine the effects the Reserve Bank of Malawi foreign exchange operations have had on the level and volatility of the Malawi Kwacha exchange rate. The direct effects on the level of exchange rate will be assessed using an event study approach. Policy intervention effects on the exchange rate volatility shall be examined over the period of floatation of the exchange rate..
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0407022.
Length: 16 pages
Date of creation: 19 Jul 2004
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exchange rate volatility; market intervention;
Other versions of this item:
- Simwaka, Kisu & Mkandawire, Leslie, 2008. "The efficacy of foreign exchange market intervention in Malawi," MPRA Paper 15946, University Library of Munich, Germany.
- Kisukyabo Simwaka & Leslie Mkandawire, 2011. "The Efficacy of Foreign Exchange Market Intervention in Malawi," Research Papers RP_216, African Economic Research Consortium.
- E - Macroeconomics and Monetary Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-26 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Hali Edison & Paul Cashin & Hong Liang, 2006. "Foreign exchange intervention and the Australian dollar: has it mattered?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 11(2), pages 155-171.
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