Efectos de la intervenciones en el mercado cambiario: el caso de Chile

Abstract

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.