http://worldcat.org/entity/work/id/45319327

Central bank participation in currency options markets

Traditional central bank foreign exchange intervention occurs in spot currency markets. Likewise, the attention of researchers has focused on spot market interventions. However, the enormous growth in derivatives products has widened the array of instruments available to central banks to achieve their monetary policy goals. Some central banks are now investigating the potential uses of derivative products. The topic first received (albeit limited) attention in the Hannoun Report (BIS, 1994), which considered the impact of recent financial innovation on the macroeconomy and monetary policy. More recently, there have been reports that several central banks have intervened in currency option markets. 2.

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