01913cas a2200253 a 4500 AALejournalIMF007309 230101c9999 xx r poo 0 0eng d 5.00 USD 9781462301218 1018-5941 BD-DhAAL BD-DhAAL Adler, Gustavo. Foreign Exchange Intervention : A Shield Against Appreciation Winds? / Gustavo Adler, Camilo Tovar Mora. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (29 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 examines foreign exchange intervention practices and their effectiveness using a new qualitative and quantitative database for a panel of 15 economies covering 2004 - 10, with special focus on Latin America. Qualitatively, it examines institutional aspects such as declared motives, instruments employed, the use of rules versus discretion, and the degree of transparency. Quantitatively, it assesses the effectiveness of sterilized interventions in influencing the exchange rate using a two-stage IV-panel data approach to overcome endogeneity bias. Results suggest that interventions slow the pace of appreciation, but the effects decrease rapidly with the degree of capital account openness. At the same time, interventions are more effective in the context of already ?overvalued' exchange rates. Mode of access: Internet Tovar Mora, Camilo. IMF Working Papers; Working Paper ; No. 2011/165 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/165/001.2011.issue-165-en.xml IMF e-Library