BIS paper studies high-frequency data on central bank intervention
Sterilised foreign exchange interventions can help to slow credit growth, authors find
Foreign exchange interventions can be an effective means of slowing credit growth triggered by capital inflows, according to a study based on high-frequency data from Colombia.
The Bank for International Settlements working paper, by Boris Hofmann, Hyun Song Shin and Mauricio Villamizar-Villegas, draws on detailed data around interventions by the Central Bank of Colombia, which the authors combine with bank-level daily flow data on new loans to corporates.
Sterilised forex interventions –
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