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Closing conference of the BIS CCA Research Network Project on "The Effects of Foreign Exchange Market Operations in Latin America"

29–30 November 2012 | Cartagena, Colombia

About this conference

On 29-30 November 2012 the BIS will hold a conference on "The Effects of Foreign Exchange Market Operations in Latin America"  (conference agenda). This conference is the culmination of a research project between five Latin American central banks facilitated by the BIS Consultative Council of the Americas (CCA) research network. It will bring together researchers from the central banking community and distinguished academics and will be hosted by the Bank of the Republic (Colombia) in Cartagena de Indias.

The objective of this research network project is to produce policy-relevant research and fresh insights on foreign market operations in Latin America using data and techniques that would be difficult to reproduce outside the central banking community. Researchers from five Latin America central banks are participating in this project (Brazil, Colombia, Chile, Mexico and Peru). Professor Kathryn Dominguez (University of Michigan) served as a research adviser. The project was coordinated by Ramon Moreno (BIS), with the assistance of Carlos Montoro (BIS).

Chair: Stephen G Cecchetti

  • What role do you see for foreign exchange intervention and foreign exchange reserve accumulation in the pursuit of macroeconomic and financial stability objectives?
  • Is there a potential conflict between traditional monetary policy objectives and the goals of foreign exchange market operations/intervention?
  • How do you view the quasi-fiscal costs of foreign exchange intervention?
  • What are the challenges and risks of foreign exchange market operations/intervention for the conduct of monetary policy operations?

(Note: The time allocated for this session is 90 minutes. Lead off presentations for each of the three rounds of discussion will be 10 minutes each.)

For inquiries regarding the organisation of the conference please contact Carlos Montoro (Carlos.Montoro@bis.org) or Ramon Moreno (Ramon.Moreno@bis.org).

Day 1 - 29 November

Juan José Echavarría, Member of the Board, Bank of the Republic (Colombia)

Presenters: Kathryn Dominguez and Ramon Moreno | Overview

Chair: Fernando Tenjo, Bank of the Republic (Colombia) 

The effects of intraday FY market operations in Latin America: Results for Chile, Colombia, Mexico and Peru

Presenter: Kathryn Dominguez and Juan Manuel Julio | Presentation, results

Discussant: Rasmus Fatum (University of Alberta) | Presentation

Order Flow and the Real: Indirect Evidence of the Effectiveness of Sterilized Interventions

Emanuel Kohlscheen (Central Bank of Brazil) | Presentation

Discussant: Eric Girardin (GREQAM - Université de la Méditerranée) | Presentation

Chair: José Luis Escrivá, BIS

The impact of different forms of FX intervention

Juan José Echavarría, Luis Fernando Melo, Santiago Téllez and Mauricio Villamizar (Bank of the Republic) | Presentation

Discussant: Andreas Fischer (Swiss National Bank) | Presentation

Chilean Exchange Rate Interventions and Inflation Expectations

Pablo Pincheira (Central Bank of Chile) | Presentation

Discussant: Emanuel Kohlscheen (Central Bank of Brazil) | Presentation

Day 2 - 30 November

Chair: Julio Santaella, Banco de México

On Central Bank Interventions in the Mexican Peso-Dollar Exchange Rate Market

Santiago García-Verdú and Miguel Zerecero Antón (Bank of Mexico) | Presentation

Discussant: Alain Chaboud (Board of Governors of the Federal Reserve System) | Presentation

The effects of forex intervention using intraday data: evidence from Peru

Marylin Choy, Erick Lahura and Marco Vega (Central Reserve Bank of Peru) | Presentation

Discussant: Paolo Vitale (G. D'Annunzio University) | Presentation

Chair: Stephen G Cecchetti, BIS

Special Session: Policy and operational issues raised by FX interventionJulio Santaella (Bank of Mexico) | Presentation
Juan José Echavarría (Bank of the Republic - Colombia)
Andreas Fischer (Swiss National Bank)