For example, the Bundesbank was found to demonstrate resistance to depreciations of the mark, and the Bank of Japan tends to resist appreciations of the yen (see inter alia, Dominguez 1998, =-=Baillie and Osterberg 1997-=-, and references therein). Kim and Sheen (2000) also report ...
To maintain exchange rate stability, central banks often intervene in the foreign exchange market by buying and selling foreign exchange. When, among other things, the central bank buys foreign exchange and releases local currency, it can cope with apprec iation pressure on the exchange rate. A...
Central banks can change the money supply through open market operations and by buying and selling government securities. To increase the money supply through open market operations, the central bank buys government securities from other banks or dealers and pays for the securities by simply increment...
The Advantage to Hiding One's Hand: Speculation and Central Bank Intervention in the Foreign Exchange Market Using a portfolio balance model of exchange rate determination, this paper develops a theoretical explanation of why central banks do not make precise announcements of their exchange rate target...
Open market operations (OMO) refer to the central bank buying or selling securities to manage interbank market liquidity and adjust money supply. Experts said the expression indicates the PBOC is expected to progressively increase treasury bond trad...
SHANGHAI/SINGAPORE (Reuters) -China's central bank is widely expected to leave a medium-term interest rate unchanged and drain some cash from the banking system when rolling over such maturing loans on Monday, a Reuters survey showed.
China's central bank may regard treasury bond trading in the secondary market as one of the common means to provide liquidity — a practice that hasn't been active for about two decades and a meaningful means to optimize its monetary policy system.
Open market operations (OMO) refer to the central bank buying or selling securities to manage interbank market liquidity and adjust money supply. Experts said the expression indicates the PBOC is expected to progressively increase treasury bond trading as a liquidity management tool, given the narrowin...
cash rate. This is the Australian base rate. Banks pay this interest rate when they take out a loan with a maturity of 1 day from another bank. By buying or selling bonds and other securities issued by the government the RBA can influence the money supply and thus the cash rate target...
buy government bonds, bills, or other government-issued notes. This buying can, however, also lead to higher inflation. When it needs to absorb money to reduce inflation, the central bank will sell government bonds on the open market, which increases the interest rate and discourages borrowing...