Publication

This paper assesses the effectiveness of the foreign exchange market interventions conducted by the Swiss National Bank (SNB) during the period from 1986 through 1995. The authors find some evidence that the interventions had an impact on the exchange rate dynamics. The significance of the effect, however, depends on the direction of intervention. The authors argue that the interventions to strengthen the Swiss franc were more effective than the ones to weaken it. The results also depend upon the length of the pre- and post-event window analyzed.