Using daily data on intervention activities by the Central Bank of Chile between
1998 and 2003, this paper studies the impact of these actions on the peso/dollar
exchange rate. Time series estimates using OLS (after testing for weak
exogeneity) and two-stage least squares estimates are used. Our findings suggest
that the effect of daily interventions is not statistically different from zero.
However, the public announcements at the beginning of both post floating
intervention periods did have an effect in the level and trend of the exchange
rate. This suggests that the market adjusted in response to the release of
information.
Tapia, M., & Tokman, A. (2016). Efectos de las intervenciones en el mercado cambiario: el caso de Chile. Estudios De Economía, 30(1), pp. 21–53. Retrieved from https://revistateatro.uchile.cl/index.php/EDE/article/view/40844
