02130cas a2200241 a 4500 AALejournalIMF010547 230101c9999 xx r poo 0 0eng d 15.00 USD 9781451956054 1020-7635 BD-DhAAL BD-DhAAL International Monetary Fund. Research Dept. IMF Staff papers : Volume 11 No. 1. Washington, D.C. : International Monetary Fund, 1964. 1 online resource (188 pages) IMF Staff 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 focuses on official intervention on the forward exchange market. The purpose is to provide a straightforward account of the theory of intervention and to use it to discuss the problems raised. The forward exchange market may be conveniently treated in terms of stocks rather than of flows; that is, the forward exchange rate is taken as reconciling the desires of market participants with respect to the holding-rather than the changing-of forward exchange positions. Official intervention in the forward exchange market can be analysed by regarding the authorities either as part of the market or as distinct from it. Official swap transactions are frequently undertaken not on the open market but by direct arrangement with foreign monetary authorities or with commercial banks. The substantial rise to be expected in the forward premium would, of course, have an adverse effect on the foreign balance, which might be unwelcome from a cyclical standpoint though it would probably merely involve a diminution in the improvement that would otherwise have occurred as a result of the recession. Mode of access: Internet IMF Staff Papers; IMF Staff Papers ; No. 1964/001 Full text available on IMF http://elibrary.imf.org/view/journals/024/1964/001/024.1964.issue-001-en.xml IMF e-Library