IDEAS home Printed from https://ideas.repec.org/a/spt/apfiba/v4y2014i4f4_4_3.html
   My bibliography  Save this article

An Evidence for Ineffectiveness of Central Bank Foreign Exchange Interventions from Turkey

Author

Listed:
  • Macide Çiçek

Abstract

This study examines the effects of the Central Bank of the Republic of Turkey’s foreign exchange interventions via auctions on the level and volatility of the Turkish lira/US dollar exchange rate between February 02, 2009 and January 31, 2014 with daily data. In order to study the impact of interventions on the Turkish lira, this study employs the Exponential GARCH (1,1) framework. The results suggest that interventions have no significant impact on the level of the exchange rate, ever so leading the Turkish lira to appreciate. Regarding volatility, the presence of the Central Bank in the market alone is not statistically significant, however, intervention volume has a weak significant impact on the exchange rate volatility in negative direction, although still the magnitude of impact is indifferent from zero. Also, the leverage effect is found insignificant, may be referring to non–active central bank intervention in the market during the period.

Suggested Citation

  • Macide Çiçek, 2014. "An Evidence for Ineffectiveness of Central Bank Foreign Exchange Interventions from Turkey," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 4(4), pages 1-3.
    • Handle: RePEc:spt:apfiba:v:4:y:2014:i:4:f:4_4_3
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/JAFB%2fVol%204_4_3.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spt:apfiba:v:4:y:2014:i:4:f:4_4_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.