From Lombard Street to Avenida Paulista Foreign Exchange Liquidity Easing in Brazil in Response to the Global Shock Of 2008-09

Author/creator Stone, Mark R. Author
Other author Walker, W. Christopher Author
Other author Yasui, Yosuke Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description40 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation The provision of foreign exchange liquidity by emerging market central banks during the global shock of 2008-09 departs from the domestic liquidity lender of last resort role described by Bagehot in his classic Lombard Street. This paper documents and analyzes the foreign exchange liquidity providing measures of the Banco Central do Brasil (BCB) in response to varied market stresses. These measures appear to have reduced the relative onshore cost of dollar liquidity on impact and seemed to stabilize market expectations of exchange rate volatility. the results suggest that foreign exchange liquidity easing operations may become a standard central bank tool.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451918205
ISBN1451918208 (E-Book) Active Record
Stock number00013468

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