Mr. Asad Qureshi, Senior Financial Sector Expert, Monetary and Capital Markets Department, IMF
The seminar would benefit senior to mid-level staff associated with markets, risk, monetary policy or financial stability departments of the central bank. The discussion would benefit central bank staff associated with policy, risk assessment and market operations.
Mr. Qureshi (MCM, IMF) will present the key points of an internal note on “Central Bank Support for Spot and Derivative Foreign Exchange Markets”. The COVID-19 shock prompted increased interventions by central banks to support normal functioning of foreign exchange (FX) markets in both developing and advanced economies. FX interventions (FXI) are warranted to avoid disorderly market conditions that could engender exchange rate (ER) overshooting and excessive volatility, and illiquidity in FX markets. These in turn could impair users’ ability to hedge FX risks, threaten price and financial stability, and weaken monetary policy transmission. The COVID-19 crisis has seen increased central bank support for (or intervention in) spot and derivative foreign exchange (FX) markets. Central bank support in FX markets should be limited and be designed to reach its objectives while minimizing the loss of official FX reserves. The discussion is to cover range of topics from the rationale and clarity of objectives for FXI to use of instruments and triggers. The presentation in the first half of the session would be around 45minutes, followed by interactive virtual Q&As.
To register for this webinar, please complete the online form here by March 23, 2021 (by 12 noon, Singapore time). Only official email addresses are accepted.