The BIS set up a Working Group on “Capital flows, exchange rates and policy frameworks in emerging Asia” under the direction of its Asian Consultative Council (ACC) in 2019, to focus on the joint use of monetary, macroprudential, exchange rate and capital flow management policies to deal with capital flows and exchange rate volatility.
The Working Group is made up of members from the central banks and monetary authorities of China, Hong Kong SAR, India, Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand, as well as observers from the central banks of Australia, Japan and New Zealand.
On Nov. 27, 2020, the BIS released the first report of the Working Group. This report is based on responses to two surveys of ACC members, organised by different elements of policy frameworks. First, a detailed questionnaire, intended to provide a stocktake of how central banks model exchange rates and capital flows and incorporate these into their policy frameworks, and how they use various policy instruments to deal with challenges related to capital flows and exchange rates. Second, a short supplementary survey, added to assess changes in response to the COVID-19, a shock that is serving as a severe stress test of policy frameworks in many jurisdictions in the Asia-Pacific region.
Electronic Access: BIS “Capital flows, exchange rates and policy frameworks in emerging Asia” Working Group report
