Abstract :
[en] This paper empirically investigates the main determinants of secret interventions in the foreign exchange
(FX) market. Using the recent experience of the Bank of Japan, we estimate a model that explains the share
of secret to reported interventions in the FX market. Two sets of determinants are clearly identified: the
first is related to the probability of detection of the central bank orders by market participants; the second
to the central bank’s internal decision to opt for secrecy. Our estimations support the arguments of current
microstructure theories that rationalize the use of secret interventions.
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