Key operational issues on foreign exchange interventions

In recent years, FX interventions have gained greater relevance for most Consultative Council for the Americas central banks, having become an integral part of their monetary policy frameworks. Complementing standard monetary instruments, they help central banks deal with the effects of large swings in capital flows and liquidity.

The Consultative Group of Directors of Operations (CGDO) Study Group focuses on the key aspects of FX interventions from an operational perspective. The study group's aim is to deepen participants' understanding of practical issues such as:

• how to define the size, timing and duration of FX interventions
• how to interact with market participants
• how to communicate with the general public
• what procedures and governance standards regulate interventions