Sterilised central bank intervention in the foreign exchange market *

@inproceedings{Vitale1998SterilisedCB,
  title={Sterilised central bank intervention in the foreign exchange market *},
  author={Paolo Vitale},
  year={1998}
}
We have studied the signalling role of sterilised foreign exchange intervention using a market micro-structure framework. We have assumed that the monetary authorities intervene in the foreign exchange market in order to target the value of a foreign currency. Since the fundamentals of the foreign currency are not necessarily equal to this objective, the… CONTINUE READING