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Foreign exchange intervention and central bank independence: the Latin American experience

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  • Mauricio Nunes
  • Sergio Da Silva

Abstract

Employing data from 13 Latin American countries, we find that greater central bank independence is associated with lesser intervention in the foreign exchange market, and also with leaning-against-the-wind intervention. We also find that the structural reforms that occurred in Latin America mostly in the 1990s helped to reduce the need for foreign exchange intervention.

Suggested Citation

  • Mauricio Nunes & Sergio Da Silva, 2008. "Foreign exchange intervention and central bank independence: the Latin American experience," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 4(5), pages 379-382.
    • Handle: RePEc:taf:raflxx:v:4:y:2008:i:5:p:379-382
    DOI: 10.1080/17446540701735996
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    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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