01773cas a2200241 a 4500 AALejournalIMF014179 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475563580 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Western Hemisphere Dept. Peru : Selected Issues Paper. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (69 pages) IMF Staff Country Reports <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 Selected Issues paper assesses empirically the motives and effectiveness of foreign exchange (FX) interventions in Peru. The results of the study indicate asymmetries both in the Central Reserve Bank of Peru's reaction function and in the effectiveness of FX interventions. Probit estimates of the likelihood of FX purchases and sales, in the first stage of the regression, show that both forms of intervention are targeted at leaning against the wind; that is, resisting appreciation in the former case and resisting depreciation in the latter. But only FX sales, not FX purchases, react to volatility. Similarly, instrumental variable regression results show evidence of asymmetry in the effectiveness of FX interventions. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2014/022 Full text available on IMF http://elibrary.imf.org/view/journals/002/2014/022/002.2014.issue-022-en.xml IMF e-Library