Unveiling the Effects of Foreign Exchange Interventions: Evidence from the Kyrgyz Republic, wp/20/219, October 2020

IMF Working Papers
 describe research in progress by the author(s) and are published to 
elicit comments and to encourage debate. The views expressed in IMF Working Papers are 
those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, 
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Contents Page 
Abstract ___________________________________________________________________2
I. Introduction ______________________________________________________________4
II. Literature Review _________________________________________________________5
III. Institutional Setup of Foreign Exchange Market in the Kyrgyz Republic _____________7
IV. Data and Stylized Facts ___________________________________________________9
V. Empirical Specification and Estimation Results ________________________________10
A. Are FX interventions symmetric to exchange rate fluctuations? ____________________10
B. What is the degree of exchange rate management? ______________________________10
C. What are the determinants of FX interventions? ________________________________11
D. What happens with exchange rate around FX interventions? Event-study analysis _____12
VI. Conclusions____________________________________________________________14
References ________________________________________________________________27
FIGURES 
1.
 The volume of FX sales and purchases________________________________________15
2.
 Exchange rate dynamics and FX sales ________________________________________16
3.
 Exchange rate dynamics and FX purchases ____________________________________17
4.
 Moving average of exchange rate changes _____________________________________18
5.
 Moving average of volatility of exchange rate changes ___________________________19
6.