IDEAS home Printed from https://ideas.repec.org/p/aer/wpaper/9ed7bead-7569-4727-8d4f-dd546fa70877.html
   My bibliography  Save this paper

Central Bank Intervention and Exchange Rate Volatility in Zambia

Author

Listed:
  • Chipili, Jonathan Mpundu

Abstract

The study analyses the impact of central bank intervention on the volatility of the exchange rate in Zambia over the period 1996-2010. The empirical findings reveal a statistically weak negative impact of intervention on exchange rate volatility. Further, there is little empirical support for a central bank decision to intervene in the foreign exchange market on account of volatility in the exchange rate. The results seem to suggest that the Bank of Zambia should not rely entirely on intervention to dampen volatility in the exchange rate; domestic policy changes are required to reinforce intervention. Triggers for intervention should also be re-examined within the context of the exchange rate policy objective.

Suggested Citation

  • Chipili, Jonathan Mpundu, 2014. "Central Bank Intervention and Exchange Rate Volatility in Zambia," Working Papers 9ed7bead-7569-4727-8d4f-d, African Economic Research Consortium.
    • Handle: RePEc:aer:wpaper:9ed7bead-7569-4727-8d4f-dd546fa70877
    Note: African Economic Research Consortium
    as

    Download full text from publisher

    File URL: https://publication.aercafricalibrary.org/123456789/151
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aer:wpaper:9ed7bead-7569-4727-8d4f-dd546fa70877. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Njiru (email available below). General contact details of provider: https://edirc.repec.org/data/aerccke.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.