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The effectiveness of the interventions of the Swiss National Bank: an event-study analysis

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  • Pierdzioch, Christian
  • Stadtmann, Georg

Abstract

We use the event-study methodology to analyze the effectiveness of the foreign exchange market interventions conducted by the Swiss National Bank (SNB) during the period from 1986 through 1995. We find some evidence that the interventions of the SNB had an impact on exchange rate dynamics. The significance of this effect, however, depends on the direction of intervention. In general, the evidence suggests that the interventions of the SNB to strengthen the Swiss franc were more effective than its interventions to weaken the Swiss franc. We also find that the results of the tests for the effectiveness of the interventions of the SNB depend upon the length of the pre- and post-event window analyzed.

Suggested Citation

  • Pierdzioch, Christian & Stadtmann, Georg, 2003. "The effectiveness of the interventions of the Swiss National Bank: an event-study analysis," Kiel Working Papers 1160, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkwp:1160
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    References listed on IDEAS

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    Cited by:

    1. Christopher J. Neely, 2005. "An analysis of recent studies of the effect of foreign exchange intervention," Review, Federal Reserve Bank of St. Louis, vol. 87(Nov), pages 685-718.
    2. Michael R. King & Rasmus Fatum, 2005. "The Effectiveness of Official Foreign Exchange Intervention in a Small Open Economy: The Case of the Canadian Dollar," Staff Working Papers 05-21, Bank of Canada.
    3. Pontines, Victor & Siregar, Reza, 2009. "Intervention index and exchange rate regimes: the cases of selected East-Asian economies," MPRA Paper 17138, University Library of Munich, Germany.
    4. Zhang, Zhichao & Li, He & Zhang, Chuanjie, 2017. "Oral intervention in China: Efficacy of Chinese exchange rate communications," International Review of Financial Analysis, Elsevier, vol. 49(C), pages 24-34.

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    More about this item

    Keywords

    Foreign exchange market; Central bank intervention; Swiss National Bank;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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