Skip to main content

EM policymakers step back from foreign exchange intervention

One of the more surprising features of August’s EM currency sell-off is how little policymakers in the worst-affected countries intervened in foreign exchange markets to try to stop it. In the case of Turkey, that probably reflects concerns that reserve levels were already worryingly low. But most other EMs have plenty of reserves. Their decision not to intervene instead underlines the point that policymakers are no longer so rattled by currency depreciation.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access