Foreign Exchange Swaps

Bartolini, Leonardo, New England Economic Review

Foreign exchange swaps have appeared for some time in the intervention toolkit of many central banks around the world, although their popularity seems to be on the wane. In a Bank for International Settlements survey taken in 1997 (BIS 1997, p. 332), seven of fourteen industrial-country central banks surveyed listed foreign exchange swaps against either the U.S. dollar or the deutsche mark (or both) among the tools used to conduct open market intervention. Of those seven, five--Austria, Belgium, Germany, Italy, and the Netherlands--discontinued foreign exchange operations when they became part of the European Monetary Union. Of the remaining two, Australia and Switzerland, only the latter has used foreign exchange swaps extensively, at some point as its main …

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Publication information: Article title: Foreign Exchange Swaps. Contributors: Bartolini, Leonardo - Author. Journal title: New England Economic Review. Publication date: Spring 2002. Page number: 11+. © 1999 Federal Reserve Bank of Boston. COPYRIGHT 2002 Gale Group.

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