Arbeitspapier

FX interventions in Brazil: a synthetic control approach

The taper tantrum of May 2013 generated sharp fall in risky assets prices, including the depreciation of several emerging market currencies. To fight excess volatility and exchange rate overshooting, the Central Bank of Brazil announced a major program of interventions in foreign exchange markets. We use a synthetic control approach to determine whether or not the intervention program was successful. Our results suggest that the first FX intervention program mitigated the depreciation of the real against the dollar. A second announcement made later in the year that the program was going to continue on a smaller basis had a smaller effect, which was not significant. This result is corroborated by a standard event study methodology. We also document that both program did not have an impact on the volatility of the exchange rate.

Sprache
Englisch

Erschienen in
Series: Texto para discussão ; No. 630

Klassifikation
Wirtschaft
Foreign Exchange
Information and Market Efficiency; Event Studies; Insider Trading
Thema
FX interventions
synthetic control
ArCo

Ereignis
Geistige Schöpfung
(wer)
Chamon, Marcos
Garcia, Marcio
Souza, Laura
Ereignis
Veröffentlichung
(wer)
Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
(wo)
Rio de Janeiro
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Chamon, Marcos
  • Garcia, Marcio
  • Souza, Laura
  • Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia

Entstanden

  • 2015

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