Proceedings of the 2015 International Conference on Humanities and Social Science Research

A Study on Asymmetric Preference in Foreign Exchange Market Intervention in Emerging Asia

Authors
Yanzhen Wang, Xiumin Li, Yutan Li, Mingming Liu
Corresponding Author
Yanzhen Wang
Available Online September 2015.
DOI
https://doi.org/10.2991/ichssr-15.2015.19How to use a DOI?
Keywords
emerging Asia, asymmetry, foreign exchange market intervention, nominal exchange rate, nominal effective exchange rate
Abstract
Using asymmetric loss function, this paper estimates asymmetric preference in central bank foreign exchange market intervention in seven emerging Asian economies between January 1999 and December 2014 and its three sub-sample periods. The estimation results indicate that all the seven countries have "fear of appreciation" asymmetric intervention preference in the entire sample period. While, in three sub-sample periods, Philippines has "fear of depreciation" asymmetric intervention preference in the first sub-sample period, but it has "fear of appreciation" asymmetric intervention preference in the later two sub-sample periods and so do all the other six countries in all sub-sample periods. Besides, the estimation results also reveal that there is big difference in degree and evolution trend of asymmetric intervention in different countries and each country has different degree of asymmetric intervention against nominal exchange rate and nominal effective exchange rate.
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Proceedings
2015 International Conference on Humanities and Social Science Research
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
September 2015
ISBN
978-94-6252-115-5
ISSN
2352-5398
DOI
https://doi.org/10.2991/ichssr-15.2015.19How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yanzhen Wang
AU  - Xiumin Li
AU  - Yutan Li
AU  - Mingming Liu
PY  - 2015/09
DA  - 2015/09
TI  - A Study on Asymmetric Preference in Foreign Exchange Market Intervention in Emerging Asia
BT  - 2015 International Conference on Humanities and Social Science Research
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/ichssr-15.2015.19
DO  - https://doi.org/10.2991/ichssr-15.2015.19
ID  - Wang2015/09
ER  -