Bank interventions in EUR/USD, EUR/CZK, EUR/RUB

Bc. Arkadiy Korablev, BSc

Master's thesis

Abstract:

This Diploma thesis is focused on economic analysis of foreign exchange interventions, that had been implemented in three different regions: the Russian Federation, the Czech Republic and the European Union. Author tried to evaluate reasons and impacts of this step from the descriptive and analytical point of view. For better understanding of problematic, the first chapter is dedicated to the literature review. It covers the basic definitions and points, which are connected with the theme of the Diploma thesis. The second chapter contains the analytical part, which is divided into three subchapters. The first part of the second chapter analyses the situation in Russia, reasons and impacts of the Russian Central Bank policy. Furthermore, in this part were analysed main indicators which have had an impact on the economy of Russian Federation and on RCB strategy in foreign exchange interventions. The second part contains opinions and reasons of implementation of the foreign exchange intervention in Czech Republic, also provides economical analysis of main indicators, such as: GDP per capita and Foreign Trade. The last part consists of analysis of falling Euro against the US dollar. As well as the the main reasons were analysed and explained. The result of this work is to consider, if the foreign exchange intervention is the right step, if it could be the medicine for all diseases as there is no conclusion about this impact.

Keywords

intervention, currency, exchange rate, free market operations, central banks

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2016

Thesis defence

• Supervisor: Ing. Petr Procházka, MSc Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management