IMF | STI

Details

Start: 
April 17, 2023

End:
April 21, 2023

Course Number:
ST23.14

Application Deadline

January 25, 2023

FX Intervention Rules: A Risk-Based Framework (FIRARBF)

April 17 - 21

Target Audience

Mid-level to senior central bank officials interested in market operations and monetary policy strategy.

Qualifications

Participants with experience in bank central bank operations, financial markets, and basic knowledge of quantitative methods.

Course Description

The course presents how to estimate and implement foreign exchange intervention rules based on a risk approach. The course covers techniques suitable for:

• Central banks operating a flexible exchange rate arrangement, intervening on the foreign exchange market with financial and price stability objectives
• Central banks transitioning from a fixed exchange rate arrangement to a floating exchange rate arrangement

The course covers the theoretical background for risk-based FX interventions, the econometric theory of risk estimation and will present a complete application on a country case. The theory of risk-based FX interventions is explained in the IMF Working Paper No. 21/32 (Lafarguette and Veyrune 2021)

Course Objectives

Upon completion of this course, participants should be able to implement an FX risk model that can be used for:

• Conducting FX market monitoring and inform policymakers decisions.
• Intervening on the FX markets via a risk-optimal approach.
• Benchmarking past FX interventions (even discretionary-based).