Based on a survey of 10 central banks and a review of existing literature, this
paper examines the choice between transparency versus ambiguity in central
banks' foreign exchange intervention. Three case studies - Canada, Hong Kong SAR
and Japan - are presented to highlight the problems facing central banks in this
choice, and the changes that have been made to cope with those challenges.
The views expressed in this publication are those of the authors and do not necessarily reflect the views of the BIS or its member central banks.