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Foreign Exchange Interventions in Croatia and Turkey: Should We Give a Damn?

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  • Bal??zs ??gert

    ()

  • Maroje Lang

    ()

Abstract

This paper studies the impact of daily official foreign exchange interventions on the exchange rates of two EU candidate countries, namely Croatia and Turkey for the periods from 1996 to 2004 and from 2001 to 2004, respectively. Using the event study methodology and a variety of GARCH models reveals that both the Croatian and the Turkish central banks were in a position to influence, to some extent, the level of the exchange rate during the period studied. This lends support to the view that foreign exchange intervention may be effective to a limited extent in emerging market economies.

Suggested Citation

  • Bal??zs ??gert & Maroje Lang, 2005. "Foreign Exchange Interventions in Croatia and Turkey: Should We Give a Damn?," William Davidson Institute Working Papers Series wp755, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2005-755
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    References listed on IDEAS

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    5. 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.
    6. Guillermo A. Calvo & Carmen M. Reinhart, 2002. "Fear of Floating," The Quarterly Journal of Economics, Oxford University Press, vol. 117(2), pages 379-408.
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    8. Jorge I Canales Kriljenko, 2003. "Foreign Exchange Intervention in Developing and Transition Economies; Results of a Survey," IMF Working Papers 03/95, International Monetary Fund.
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    More about this item

    Keywords

    central bank intervention; foreign exchange intervention; official interventions; foreign exchange market; effectiveness; exchange rate volatility; emerging economies; transition economies;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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