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- Title
Can central banks be heard over the sound of gunfire?
- Authors
Gao, Ge; Nikolsko‐Rzhevskyy, Alex; Talavera, Oleksandr
- Abstract
In this study, we examined the effectiveness of central bank communications during times of significant adverse shocks. Specifically, we examined how the National Bank of Ukraine (NBU) regulated foreign exchange (FX) markets during the Russo‐Ukrainian War in 2022. Data collected from both the black and authorized FX markets suggested that the content of the NBU's announcements significantly impacted FX market agents. Announcements aimed at maintaining a fixed (floating) FX rate prompted an increase (decrease) in the black market premium in cash transactions. Moreover, the NBU's announcements influenced the sale side of foreign currency more than any other aspect, an area where the black market FX traders held near monopolistic power.
- Subjects
UKRAINE; CENTRAL banking industry; FOREIGN exchange market; RUSSIAN invasion of Ukraine, 2022-; BLACK market; GUNFIRE
- Publication
Journal of Financial Research, 2023, Vol 46, pS183
- ISSN
0270-2592
- Publication type
Article
- DOI
10.1111/jfir.12358