The Impact of Pre-announced Day-to-day Interventions on the Colombian Exchange Rate

Número: 
767
Publicado: 
Clasificación JEL: 
E52, E58, F31
Palabras clave: 
Central bank intervention, reaction function, Tobit-GARCH, foreign exchange intervention mechanisms

The adoption of a managed regime assumes that interventions are relatively successful. However, while some authors consider that foreign exchange interventions are ineffective, arguing that domestic and foreign assets are close substitutes, others advocat