Economic Change and Restructuring

, Volume 39, Issue 1–2, pp 35–62 | Cite as

Foreign exchange interventions in a small emerging market: the case of Croatia

  • Balázs ÉgertEmail author
  • Maroje Lang


This paper studies the impact of daily official foreign exchange interventions on the exchange rates in Croatia for the period from 1996 to 2004. Using the event study methodology and a variety of GARCH models reveals that the Croatian central bank was in a position to influence, to some extent, the level of the exchange rate during the period studied. This lends support to the view that foreign exchange intervention may be effective in emerging market economies.


Central bank intervention Foreign exchange intervention Official interventions Foreign exchange market Effectiveness Exchange rate volatility Emerging economies Transition economies 

JEL Classification



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Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.Ann ArborUSA
  2. 2.Croatian National BankZagrebCroatia

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