Effective sterilized foreign exchange intervention? : evidence from a rule-based policy

Número: 
964
Publicado: 
Clasificación JEL: 
E58, F31, C22
Palabras clave: 
Rule-Based Foreign Exchange Interventions, Portfolio Balance, Central Bank Policy, Regression Discontinuity

We investigate the e ectiveness of sterilized foreign exchange interventions by exploiting a discontinuous policy rule used by the Central Bank of Colombia (CBoC). We use a unique data set from CBoC comprised of tick by tick intervention and order book da