The Use of Foreign Exchange Swaps by Central Banks
Author: Ms.Catharina J. Hooyman
Publisher: International Monetary Fund
Published: 1993-08-01
Total Pages: 30
ISBN-13: 145184848X
DOWNLOAD EBOOK →The paper discussed the use of foreign exchange swaps by central banks. Such use has aimed at affecting domestic liquidity, managing foreign exchange reserves, and stimulating domestic financial markets. It discusses these different uses and present evidence for a selected group of countries. The paper cautions about the use of foreign exchange swaps to defend a particular exchange rate at a time when foreign exchange reserves are under pressure. It notes, finally, that use of foreign exchange swaps by central banks has been losing importance.