Download or read book Foreign Exchange Intervention in Peru written by Renzo Rossini and published by . This book was released on 2014 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: The unprecedented monetary expansion implemented by central banks in developed economies during recent years has induced an extraordinary flow of funds to emerging economies and supported high commodity prices. This has created upward pressures on the value of local currencies and a further expansion of available funds and lending. This situation gave rise to concerns about a possible misalignment of the real exchange rate relative to its equilibrium level, especially because it can be deemed a temporary response to the current phase of the cycle in developed economies, but with a potentially lasting negative impact on the tradable sector of the economy. In Peru, the response to this situation has been an intensification of sterilized intervention in the foreign exchange market and the use of reserve requirements on local banks' foreign currency liabilities, reinforcing macro-financial stability in an economy with a partially dollarized financial system. Both instruments have contributed significantly to reducing excessive exchange rate volatility, building up an international reserve buffer, and ensuring a normal flow of bank credit.Full publication: "http://ssrn.com/abstract=2420030" Market Volatility and Foreign Exchange Intervention in EMEs: What Has Changed?
Download or read book Motives and Effectiveness of Forex Interventions written by Melesse Tashu and published by International Monetary Fund. This book was released on 2014-12-12 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses empirically the motives and effectiveness of forex interventions in Peru. While the central bank of Peru states that its forex interventions aim only at containing excessive exchange rate volatility, the results of this paper show that, in practice, the interventions seem to have aimed at “leaning against the wind” as well. The results also show that forex sales, but not forex purchases, react to volatility, indicating asymmetry in the central bank’s reactions to episodes of appreciation and depreciation pressures. Similarly, the paper documents evidence of asymmetry in the effectiveness of forex interventions.
Download or read book How Does Public Information on Central Bank Intervention Strategies Affect Exchange Rate Volatility written by B. Gabriela Mundaca and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Peru written by Alejandro M. Werner and published by International Monetary Fund. This book was released on 2015-09-16 with total page 458 pages. Available in PDF, EPUB and Kindle. Book excerpt: Peru stands out among Latin American countries as an example of successful economic reforms over the past decade. This comprehensive look at Peru's economy traces that country's journey from a debt crisis in the 1980s to having buffers in place that allowed it to emerge unscathed from the global financial crisis. The book examines the steps Peru undertook to achieve these results and extracts lessons to be learned. Chapters are written by IMF staff and Peruvian economists.
Download or read book Drivers of Peru s Equilibrium Real Exchange Rate written by Melesse Tashu and published by International Monetary Fund. This book was released on 2015-02-11 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper tests the hypothesis of ‘commodity currency’ on the nuevo sol and, more generally, identifies the drivers of Peru’s equilibrium real exchange rate using a cointegration analysis. The results show that export commodity prices do not have a statistically significant impact on Peru’s real effective exchange rate, suggesting that the nuevo sol is not a commodity currency. The paper provides empirical evidence that large profit repatriation and foreign exchange intervention have effectivelly insulated Peru’s real exchange rate from the impact of commodity price shocks. Peru’s equilibrium real exchange rate is found to be driven mostly by productivity and government consumption.
Download or read book How Does Public Information on Central Bank Intervention Strategies Affect Exchange Rate Volatility The Case of Peru written by Gabriela Mundaca and published by . This book was released on 2017 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Intervention operations in the foreign exchange market are used by the Banco Central de Reserva del Peru to manage both the level and volatility of their exchange rates. The Banco Central de Reserva del Peru provides information to the market about the specific hours of the day interventions would take place and the total amount of intervention. It consistently buys and sells on the foreign exchange market to avoid large appreciations and depreciations of the Peruvian nuevo sol against the U.S. dollar (Sol/USD), respectively. The estimates in this paper indicate that past information on interventions has moved the sol in the intended direction but only during the time the Banco Central de Reserva del Peru has announced it would be active in the foreign exchange market. The authors also find that the expectation of future interventions by the Banco Central de Reserva del Peru decreases the volatility of the sol when it intervenes to avoid an appreciation of the sol; however, the opposite occurs when the intervention takes place to defend the sol from depreciation. Indeed, the sol has been less volatile during periods when the Banco Central de Reserva del Peru has intervened than otherwise.
Download or read book Currency Substitution and Inflation in Peru written by Ms.Liliana Rojas-Suárez and published by International Monetary Fund. This book was released on 1992-05-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that there is a long-run relationship between the expected rate of depreciation in the black-market-exchange rate and the ratio of domestic to foreign money in Peru; that is, the hypothesis of currency substitution can explain the behavior of real holdings of money in Peru. The paper also shows that, while the importance of currency substitution as a transmission mechanism through which domestic policies affected the dynamics of inflation was relatively small during a period of high but relatively stable inflation (January 1978-85), it became an important factor in the inflation process during the recent hyperinflation episode.
Download or read book Global Policy Spillovers and Peru s Monetary Policy written by Renzo Rossini and published by . This book was released on 2014 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an overview of the monetary policy actions undertaken by the Central Reserve Bank of Peru, combining its main inflation targeting framework with sterilised FX interventions and reserve requirement measures in order to overcome the spillover effects of global policies to counter the recessionary implications of the global financial crisis. We provide a rationale for the use of these instruments, as well as empirical evidence on their effectiveness. In general, the results show that sterilised FX interventions and reserve requirement changes have the desired effects in limiting spillover effects and smoothing out the interest rate and credit dynamics in a dual monetary economy such as Peru.Full publication: "http://ssrn.com/abstract=2498104" target="_blank" The Transmission of Unconventional Monetary Policy to the Emerging Markets.
Download or read book Reinventing the State written by Carol Wise and published by University of Michigan Press. This book was released on 2009-12-14 with total page 466 pages. Available in PDF, EPUB and Kindle. Book excerpt: The political economic history of Latin America in the post-World War II era has largely been one of underachievement and opportunities lost. This all changed with the wave of market reforms that were implemented in the 1990s. However, the precise role of these reforms as an agent of change is still hotly debated. This in-depth analysis of the Peruvian case argues for an explanation that treats institutional innovation and state reconstruction as necessary conditions for the apparent success of the market in Latin America. Exploring how state intervention has been both the cause of Latin America's economic downfall in the 1980s and the solution to its recovery, Reinventing the State analyzes three main phases of state intervention: the developmentalism that lasted until 1982, the state in retreat of the 1980s, and the streamlined state of the 1990s. Through a comprehensive examination of the Peruvian experience, the book explains the country's impressive turnaround from the standpoint of institutional modernization and internal state reform. Written for a broad academic audience, the public-policy community, and the private sector, this book is also meant as a quick primer for any journalist, consultant, or private-sector analyst in need of an overview of the region's market-reform effort and how it has played out in Peru. Carol Wise is Associate Professor, School of International Relations, University of Southern California.
Download or read book Peru and the International Monetary Fund written by Thomas Scheetz and published by University of Pittsburgh Pre. This book was released on 2010-11-23 with total page 273 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thomas Scheetz shows that the Internationaly Monetary Fund's approach in 1980s Peru did not addresses the roots of debt and financial crisis, but instead has instituted inadequate stopgap policies, which have caused great inequities because of incorrect or biased assumptions. He argues that policies to eliminate "excess demand" in fact harm the poor, and the support the rich.
Download or read book Sustaining Trade Reform written by Elías A. Baracat and published by World Bank Publications. This book was released on 2013-08-05 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt: Factually, the principal finding of this book is that the trade policy reforms introduced by Peru in the 1990s have continued over several changes of president, whereas similar reforms in Argentina have been reversed. In both countries, the reforms included the introduction of new mechanisms for managing trade policy as well as the reduction of restrictions. Throughout the decade beginning in 2000, Peru’s liberalization expanded. The new institutions became more robust, and through them pressures for protection were effectively contained. At the same time, Argentine trade policy returned to the high-protection import substitution regime in place before the 1990s reforms. Multiple restrictions have been imposed, mostly through a reversion to informal methods that abjure the governance characteristics that the 1990s reforms introduced. The difference between the two cases cannot be explained by economic parameters such as resource endowments or external shocks. Peru’s reforms manifest the buoyant and confident attitude toward the global economy that reform leaders were able to introduce into Peruvian politics. In the words of former president Alan García, there is an eagerness to “climb up on the wave of growth.” In comparison, Argentina’s current development strategy sees international trade as detrimental to Argentina’s interests unless participation by Argentine buyers and sellers is guided by government intervention. The Peruvian case provides examples of successfully managing the politics of reform and the technical aspects of policy so as to establish transparent and participatory processes that weigh accurately the impact of trade policy on all affected domestic parties. The Argentine case demonstrates that the World Trade Organization legal system is not an effective restraint on a government that wants to revert to an import substitution regime. International cooperation has been useful when it has recognized and influenced domestic sovereignty over economic regulation; however, it is not been useful when approached as a matter of international regulation of national actions.
Download or read book Capital Flows Monetary Policy and FOREX Intervention in Peru written by Renzo G. Rossini and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Foreign Exchange Intervention in Inflation Targeters in Latin America written by Mr.Marcos d Chamon and published by International Monetary Fund. This book was released on 2019-03-01 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign exchange intervention is widely used as a policy tool, particularly in emerging markets, but many facets of this tool remain limited, especially in the context of flexible exchange rate regimes. The Latin American experience can be informative because some of its largest countries adopted floating exchange rate regimes and inflation targeting while continuing to intervene in foreign exchange markets. This edited volume reviews detailed accounts from several Latin American countries’ central banks, and it provides insight into how and with what aim many interventions were decided and implemented. This book documents the effectiveness of intervention and pays special attention to the role of foreign exchange intervention policy within inflation-targeting monetary frameworks. The main lesson from Latin America’s foreign exchange interventions, in the context of inflation targeting, is that the region has had a considerable degree of success. Transparency and a clear communication policy have been key. For economies that are not highly dollarized, rules-based intervention helped contain financial instability and build international reserves while preserving inflation targets. The Latin American experience can help other countries in the design and implementation of their policies.
Download or read book Foreign Exchange Intervention written by Gustavo Adler and published by International Monetary Fund. This book was released on 2011-07-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines foreign exchange intervention practices and their effectiveness using a new qualitative and quantitative database for a panel of 15 economies covering 2004 - 10, with special focus on Latin America. Qualitatively, it examines institutional aspects such as declared motives, instruments employed, the use of rules versus discretion, and the degree of transparency. Quantitatively, it assesses the effectiveness of sterilized interventions in influencing the exchange rate using a two-stage IV-panel data approach to overcome endogeneity bias. Results suggest that interventions slow the pace of appreciation, but the effects decrease rapidly with the degree of capital account openness. At the same time, interventions are more effective in the context of already ?overvalued' exchange rates.
Download or read book Foreign Exchange Intervention in Inflation Targeters in Latin America written by Mr.Marcos d Chamon and published by International Monetary Fund. This book was released on 2019-02-28 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign exchange intervention is widely used as a policy tool, particularly in emerging markets, but many facets of this tool remain limited, especially in the context of flexible exchange rate regimes. The Latin American experience can be informative because some of its largest countries adopted floating exchange rate regimes and inflation targeting while continuing to intervene in foreign exchange markets. This edited volume reviews detailed accounts from several Latin American countries’ central banks, and it provides insight into how and with what aim many interventions were decided and implemented. This book documents the effectiveness of intervention and pays special attention to the role of foreign exchange intervention policy within inflation-targeting monetary frameworks. The main lesson from Latin America’s foreign exchange interventions, in the context of inflation targeting, is that the region has had a considerable degree of success. Transparency and a clear communication policy have been key. For economies that are not highly dollarized, rules-based intervention helped contain financial instability and build international reserves while preserving inflation targets. The Latin American experience can help other countries in the design and implementation of their policies.
Download or read book Peruvian Foreign Exchanges 1929 1950 written by Rolf Hayn and published by . This book was released on 1953 with total page 624 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Currency Substitution and Inflation in Peru written by Liliana Rojas-Suarez and published by . This book was released on 2006 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that there is a long-run relationship between the expected rate of depreciation in the black-market-exchange rate and the ratio of domestic to foreign money in Peru; that is, the hypothesis of currency substitution can explain the behavior of real holdings of money in Peru. The paper also shows that, while the importance of currency substitution as a transmission mechanism through which domestic policies affected the dynamics of inflation was relatively small during a period of high but relatively stable inflation (January 1978-85), it became an important factor in the inflation process during the recent hyperinflation episode.
