Do Sales of Foreign Exchange Reserves Lead to Currency Appreciation?
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F13%3A10295842" target="_blank" >RIV/00216208:11230/13:10295842 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1111/jmcb.12028" target="_blank" >http://dx.doi.org/10.1111/jmcb.12028</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1111/jmcb.12028" target="_blank" >10.1111/jmcb.12028</a>
Alternative languages
Result language
angličtina
Original language name
Do Sales of Foreign Exchange Reserves Lead to Currency Appreciation?
Original language description
We employ novel time-stamped reserve sales data, provided by the Czech National Bank (CNB), to carry out a time-series analysis of the exchange rate implications of Czech reserve sales aimed at mitigating valuation losses on Euro-denominated assets. Thesales were explicitly not intended to influence the value of the koruna relative to the euro. The period under study includes a well-defined regime change in the CNB's approach to reserves sales, allowing us to address whether the manner in which the sales are carried out matters for their influence on the relative value of the domestic currency. We find little evidence that reserve sales influence the exchange rate when sales are carried out on a discretionary and relatively infrequent basis. However,when the sales are carried out daily, we find a statistically and economically significant appreciation of the domestic currency follows.
Czech name
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Czech description
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Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
<a href="/en/project/GBP402%2F12%2FG097" target="_blank" >GBP402/12/G097: DYME-Dynamic Models in Economics</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2013
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Money, Credit and Banking
ISSN
0022-2879
e-ISSN
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Volume of the periodical
45
Issue of the periodical within the volume
5
Country of publishing house
US - UNITED STATES
Number of pages
24
Pages from-to
867-890
UT code for WoS article
000321628000005
EID of the result in the Scopus database
2-s2.0-84880381743