Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 9th May 2025, 10:22:08am EDT
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Session Overview |
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Track TH6-1: International Finance
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Foreign Exchange Interventions and Intermediary Constraints 1University of Sao Paolo; 2University of Warwick; 3Ecole Polytechnique, CREST The dollar intermediation channel of foreign exchange interventions (FXI), a form of the portfolio balance channel, arises from the imperfect substitutability between domestic currency and USD, the dominant global currency, along with financial frictions limiting USD liquidity access. This channel plays a key role in Banco Central do Brasil’s FXI. High-frequency data on over 8,000 FXI events (1999–2023) show that unanticipated spot sales appreciate the domestic currency, reduce covered interest parity deviations, and crowd out private intermediation, especially when intermediaries are constrained. Our results support an extended Gabaix and Maggiori (2015) model, in which constrained intermediaries amplify intervention effectiveness.
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