Central Bank Participation In Currency Options Markets

Author : Mr.Peter Breuer
Publisher : International Monetary Fund
Page : 41 pages
File Size : 47,5 Mb
Release : 1999-10-01
Category : Business & Economics
ISBN : 9781451856101

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Central Bank Participation in Currency Options Markets by Mr.Peter Breuer Pdf

This paper analyzes whether and how central banks can use currency options to lower exchange rate volatility and maintain (implicit) target zones in foreign exchange markets. It argues that selling rather than buying options will result in market makers dynamically hedging their long option exposure in a stabilizing manner, consistent with the first objective. Selling a “strangle” allows a central bank to increase the credibility of its commitment to a target zone, and could have a lower expected cost than spot market interventions. However, this strategy also exposes the central bank to an unlimited loss potential.

Author : Mr.Ousmene Mandeng
Publisher : International Monetary Fund
Page : 18 pages
File Size : 41,6 Mb
Release : 2003-06-01
Category : Business & Economics
ISBN : 9781451855722

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Central Bank Foreign Exchange Market Intervention and Option Contract Specification by Mr.Ousmene Mandeng Pdf

This paper aims to identify appropriate option contract specifications for effective central bank exchange market intervention. Option contract specifications determine the impact of options on the underlying asset or currency, and hence their actual effect on asset price or currency volatility and are therefore key to determining the effectiveness of option-based intervention. The paper reviews the experience of the systematic option-based foreign exchange market intervention of the Central Bank of Colombia and finds that its contract has only been moderately successful at abating exchange rate volatility, which is attributed here to sub-optimal contract specifications.

Author : Christian Pierdzioch
Publisher : Springer Science & Business Media
Page : 232 pages
File Size : 41,8 Mb
Release : 2001-12-06
Category : Business & Economics
ISBN : 3540427457

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Noise Trading, Central Bank Interventions, and the Informational Content of Foreign Currency Options by Christian Pierdzioch Pdf

A flexible instrument to insure against adverse exchange rate movements are options on foreign currency. Often a relatively simple foreign currency option valuation model is used to address issues related to the pricing and hedging of such options. The results of many empirical studies document that real-world foreign currency option premia deviate from those predicted by the baseline model. In the first part of the book, it is shown that a noise trader model can help to explain the observed mispricing of the baseline foreign currency option pricing model. In the second part of the book, it is studied how policymakers can exploit the pricing errors of the baseline model. In particular, it is examined how option pricing theory can be applied to assess the effectiveness of central bank interventions in the foreign exchange market. To this end, a model is constructed to analyze the effectiveness of the interventions conducted by the Deutsche Bundesbank during the Louvre period.

Author : Bank for International Settlements
Publisher : Unknown
Page : 62 pages
File Size : 44,9 Mb
Release : 1993
Category : Banks and banking, Central
ISBN : IND:30000035493208

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Central Bank Payment and Settlement Services with Respect to Cross-border and Multi-currency Transactions by Bank for International Settlements Pdf

Author : Peter D. Breuer
Publisher : Unknown
Page : 46 pages
File Size : 51,7 Mb
Release : 1999
Category : Banks and banking, Central
ISBN : UCSD:31822028394351

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Central Bank Participation in Currency Options Markets by Peter D. Breuer Pdf

Author : Board of Governors of the Federal Reserve System
Publisher : Unknown
Page : 0 pages
File Size : 54,8 Mb
Release : 2002
Category : Banks and Banking
ISBN : 0894991965

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The Federal Reserve System Purposes and Functions by Board of Governors of the Federal Reserve System Pdf

Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Author : Banco de Pagos Internacionales (Basilea, Suiza). Departamento Monetario y Económico
Publisher : Unknown
Page : 0 pages
File Size : 48,7 Mb
Release : 2013
Category : Banks and banking, Central
ISBN : 9291319627

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Market Volatility and Foreign Exchange Intervention in EMEs by Banco de Pagos Internacionales (Basilea, Suiza). Departamento Monetario y Económico Pdf

Author : Roberto Pereira Guimarães,Mr.Jorge Iván Canales Kriljenko,Mr.Cem Karacadag
Publisher : International Monetary Fund
Page : 45 pages
File Size : 54,8 Mb
Release : 2003-07-01
Category : Business & Economics
ISBN : 9781451857115

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Official Intervention in the Foreign Exchange Market by Roberto Pereira Guimarães,Mr.Jorge Iván Canales Kriljenko,Mr.Cem Karacadag Pdf

This paper offers guidance on the operational aspects of official intervention in the foreign exchange market, particularly in developing countries with flexible exchange rate regimes. A brief survey of the literature and country experience is followed by an analysis of the objectives, timing, amount, degree of transparency, and choice of markets and counterparties in conducting intervention. The analysis highlights the difficulty of detecting exchange rate misalignments and disorderly markets, and argues in favor of parsimony in official intervention. Determining the timing and amount of intervention is a highly subjective excercise, and some degree of discretion is almost necessary, though policy rules may serve as "rules of thumb."

Author : Mr.Jorge Iván Canales Kriljenko,Mr.Cem Karacadag,Roberto Pereira Guimarães,Mr.Shogo Ishii
Publisher : International Monetary Fund
Page : 58 pages
File Size : 53,8 Mb
Release : 2006-03-02
Category : Business & Economics
ISBN : 1589064216

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Official Foreign Exchange Intervention by Mr.Jorge Iván Canales Kriljenko,Mr.Cem Karacadag,Roberto Pereira Guimarães,Mr.Shogo Ishii Pdf

Despite increasing exchange rate flexibility, central banks in emerging markets still intervene in their foreign exchange markets for several reasons. In doing so, they face many operational questions, including on the degree of transparency and the choice of markets and counterparties. This paper identifies elements of best practice in official foreign exchange intervention, presents survey evidence on intervention practices in developing countries, and assesses the effectiveness of intervention in Mexico and Turkey.

Author : Mr.Tobias Adrian,Mr.Tommaso Mancini Griffoli
Publisher : International Monetary Fund
Page : 20 pages
File Size : 54,6 Mb
Release : 2019-07-15
Category : Business & Economics
ISBN : 9781498324908

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The Rise of Digital Money by Mr.Tobias Adrian,Mr.Tommaso Mancini Griffoli Pdf

This paper marks the launch of a new IMF series, Fintech Notes. Building on years of IMF staff work, it will explore pressing topics in the digital economy and be issued periodically. The series will carry work by IMF staff and will seek to provide insight into the intersection of technology and the global economy. The Rise of Digital Money analyses how technology companies are stepping up competition to large banks and credit card companies. Digital forms of money are increasingly in the wallets of consumers as well as in the minds of policymakers. Cash and bank deposits are battling with so-called e-money, electronically stored monetary value denominated in, and pegged to, a currency like the euro or the dollar. This paper identifies the benefits and risks and highlights regulatory issues that are likely to emerge with a broader adoption of stablecoins. The paper also highlights the risks associated with e-money: potential creation of new monopolies; threats to weaker currencies; concerns about consumer protection and financial stability; and the risk of fostering illegal activities, among others.

Author : DIWAKAR EDUCATION HUB
Publisher : DIWAKAR EDUCATION HUB
Page : 602 pages
File Size : 51,9 Mb
Release : 2023-11-23
Category : Antiques & Collectibles
ISBN : 8210379456XXX

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JAIIB Question Bank Book 4000+MCQ with Explanation Module Wise Paper 1,2,3&4 As Per Updated Syllabus by DIWAKAR EDUCATION HUB Pdf

IIBF -JAIIB Junior Associate of the Indian Institute of the Bankers. Complete Practice Question Answer Sets 4000 +[MCQ] Include Paper 1: Indian Economy and Indian Financial System (IE & IFS) Paper 2: Principles and Practices of Banking (PPB) Paper 3: Accounting and Financial Management for Bankers (AFM) Paper 4: Retail Banking and Wealth Management (RBWM) 4000+ Questions and Answer Included With an Explanation 1000 MCQ of Each Paper With detail Solution Questions Based on Modules given in Each Paper [Subject] As Per Updated Syllabus All Questions Design by Expert Faculties of Banking.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 144 pages
File Size : 50,6 Mb
Release : 2000-01-01
Category : Business & Economics
ISBN : 1557759804

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Research Activities of the IMF, January 1991-December 1999 by International Monetary Fund Pdf

Research activity in the IMF emphasizes the links between the organization's policy and operational concerns. The main objectives of research is IMF staff understanding of policy and operational issues relevant to the institution, and to improve the analytical quality of the work prepared for management and the Executive Board and the advice provided to member countries. The scope of research in the IMF is defined by the purposes and functions of the institution. In order to foster innovation and ensure quality control, the IMF makes much of its research available outside the institution and encourages staff to interact with academia and other research organizations through conferences, seminars, and occasional joint research projects. The visiting scholar’s program has also enhanced the quality of research done in the IMF. This program brings in leading members of the economics profession from around the world to assist in the preparation of papers for the Executive Board and to conduct research on IMF-related issues.

Author : Alex Douglas,Larry Lovrencic,Peter Pontikis
Publisher : John Wiley & Sons
Page : 293 pages
File Size : 44,5 Mb
Release : 2012-04-02
Category : Business & Economics
ISBN : 9780730376521

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FX Trading by Alex Douglas,Larry Lovrencic,Peter Pontikis Pdf

Your total plain-English guide to trading Forex Open 24 hours a day, 5½ days per week, and trading nearly $4 trillion (US) per day, Forex is the biggest, fastest growing financial market in the world. Your complete A-to-Z guide, FX Trading gets you up to speed on everything you need to know to make a killing trading Forex. Starting with the basics of money management, analysis, and FX market trading mechanics, it swiftly advances into more advanced territory, discussing trading strategies and wealth management. From quotations, pips and spreads to the pros and cons of using online brokers and websites to FX risk management, FX Trading is an indispensable tool of the trade for beginners and experienced Forex traders alike. Helps you to see past the media hype, while alerting you to common Forex trading mistakes and pitfalls and how to avoid them Filled with invaluable expert insights and proven strategies, backed by numerous examples, charts and checklists Updated to reflect the enormous growth in Forex trading and the new players involved, as well as the many changes wrought by the global financial crisis and the rapid evolution of electronic trading platforms

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 220 pages
File Size : 55,8 Mb
Release : 1998-10-01
Category : Business & Economics
ISBN : 1557757704

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International Capital Markets, 1998 by International Monetary Fund Pdf

This year's capital markets report provides a comprehensive survey of recent developments and trends in the advanced and emerging capital markets, focusing on financial market behavior during the Asian crisis, policy lessons for dealing with volatility in capital flows, banking sector developments in the advanced and emerging markets, initiatives in banking system supervision and regulation, and the financial infrastructure for managing systemic risk in EMU.

Author : Froukelien Wendt
Publisher : International Monetary Fund
Page : 25 pages
File Size : 46,5 Mb
Release : 2015-01-27
Category : Business & Economics
ISBN : 9781498322058

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Central Counterparties by Froukelien Wendt Pdf

Central counterparties (CCPs) can offer significant benefits to a market. However, CCPs are also highly interconnected with financial institutions and markets and therefore too important to fail. The increased volumes cleared through CCPs and their increasing global scope, in particular in the OTC derivatives market, make it even more important that systemic risks related to CCPs are managed. This paper argues that the current set of international policy measures does partly address these risks, but that alternative policy measures are needed to reduce remaining systemic risks. For example, the paper recommends network analysis to be conducted by CCPs and authorities to gauge potential losses and suggests a common international approach to central bank services to help reduce the dependency of CCPs on services provided by commercial banks.