01768cas a2200241 a 4500 AALejournalIMF002484 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855722 1018-5941 BD-DhAAL BD-DhAAL Mandeng, Ousmene. Central Bank Foreign Exchange Market Intervention and Option Contract Specification : The Case of Colombia / Ousmene Mandeng. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (17 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper aims to identify appropriate option contract specifications for effective central bank exchange market intervention. Option contract specifications determine the impact of options on the underlying asset or currency, and hence their actual effect on asset price or currency volatility and are therefore key to determining the effectiveness of option-based intervention. The paper reviews the experience of the systematic option-based foreign exchange market intervention of the Central Bank of Colombia and finds that its contract has only been moderately successful at abating exchange rate volatility, which is attributed here to sub-optimal contract specifications. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/135 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/135/001.2003.issue-135-en.xml IMF e-Library