Few central banks use FX swaps to defend exchange rate

Just 7% of participating central banks report using this practice

An overwhelming majority of central banks do not use foreign exchange (FX) swaps to defend their exchange rates, data from the Reserve Benchmarks 2022 reveals.

Of the 41 financial institutions that responded to the subject, 39 (92.86%) central banks said they do not use this method to intervene in FX markets. Just three (7.14%) banks said they do.

The few central banks that implement FX swaps are from emerging markets. Two of the institutions are in the Americas and one is in the Asia-Pacific

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