Comment: FX interventions

Most central banks have moved away from actual foreign exchange market interventions and now use communication, or verbal intervention, as a policy instrument to influence exchange rates when deemed necessary and desirable.

COMMENT BY CENTRALBANKNET

But is exchange rate communication an effective policy tool? A recent ECB working paper* sheds some light on what is an extremely important policy consideration for modern central bankers.

The paper's author, Marcel Fratzscher, analyses the long-term

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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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