The Use of Foreign Exchange Swaps by Central Banks: A Survey

August 1, 1993

Preview Citation

Format: Chicago

Catharina J. Hooyman The Use of Foreign Exchange Swaps by Central Banks: A Survey, (USA: International Monetary Fund, 1993) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Banking, Currencies, Currency markets, Currency swaps, Exchange rates, Financial markets, Foreign exchange, Money

Keywords: Africa, Central bank loss, Central bank need, Currencies, Currency, Currency markets, Currency swaps, Dollar, Exchange rates, Fed issues dollar, Forward market, Global, Kuwaiti dinar, Market, Profit and loss account, Swap, Swap facility, Swap operation, Swap transaction, Turkish lira, U.S. dollar, U.S. dollar swap facility, WP

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1993/064
Stock No:

WPIEA0641993
ISBN:

9781451848489
ISSN:

1018-5941

Notes

Also published in Staff Papers, Vol. 41, No. 1, March 1994.

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