The impact of foreign exchange intervention in the balance sheet of the Czech National Bank
The impact of foreign exchange intervention in the balance sheet of the Czech National Bank

Author(s): Dalibor Pánek
Subject(s): Business Economy / Management, Economic history, Economic policy, Present Times (2010 - today), Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: Central bank; non-standard monetary policy instrument; exchange rate intervention; the balance of the central bank; the banking sector; the reserve banks; foreign exchange reserves;
Summary/Abstract: The aim of the text is an analysis of the manifestations of the foreign exchange intervention of the Czech National Bank in the central bank's balance sheets and their connections in the banking sector. The motivation of the text is the manifestation of the interventions in the central bank's balance sheets and the resulting possible manifestations after their termination. The analysis of the manifestations of foreign exchange intervention in the central bank's balance sheets was conducted from the data for the years 2010 – 2016. The data include the period before the use of this instrument and in the course of its application. The text characterizes the effects of the active and passive sides of the balance sheet of the central bank and assesses the achievement of the objectives set. Analysis of selected items of the balance of the central bank was carried out on the basis of the theoretical background of the used resources and the practical knowledge of the author. In conclusion, the author presents his views on the use of this instrument of monetary policy and pronounced his prediction. In the text were used methods description of the theoretical and practical parts, methods of comparison, analysis and prediction in the part of monitoring the evolution of balance sheet items and their context.

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