Profitability of RBA foreign exchange operations

Since the float of the Australian dollar in December 1983, the Reserve Bank of Australia has retained the discretion to intervene in the foreign exchange markets in order to avoid what it perceives to be large overshooting in the currency. This paper invokes the 'profit test' first advocated by Friedman to assess whether the RBA's foreign exchange operations have had a stabilising influence on the exchange rate.

"We do this over the entire post-float period, as well as for each of the three

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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