01957cas a2200253 a 4500 AALejournalIMF016759 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484323076 1018-5941 BD-DhAAL BD-DhAAL Adler, Gustavo. The Cost of Foreign Exchange Intervention : Concepts and Measurement / Gustavo Adler, Rui Mano. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (37 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 The accumulation of large foreign asset positions by many central banks through sustained foreign exchange (FX) intervention has raised questions about its associated fiscal costs. This paper clarifies conceptual issues regarding how to measure these costs both from an ex-post and an ex-ante (relevant for decision making) perspective, and estimates both marginal and total costs for 73 countries over the period 2002-13. We find ex-ante marginal costs for the median emerging market economy (EME) in the inter-quartile range of 2-5.5 percent per year; while ex-ante total costs (of sustaining FX positions) in the range of 0.2-0.7 percent of GDP per year for light interveners and 0.3-1.2 percent of GDP per year for heavy interveners. These estimates indicate that fiscal costs of sustained FX intervention (via expanding central bank balance sheets) are not negligible. Mode of access: Internet Mano, Rui. IMF Working Papers; Working Paper ; No. 2016/089 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/089/001.2016.issue-089-en.xml IMF e-Library