Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/45652 
Year of Publication: 
2007
Series/Report no.: 
Working Paper No. 65
Publisher: 
Universität Leipzig, Wirtschaftswissenschaftliche Fakultät, Leipzig
Abstract: 
The paper analyses the monetary policy operations of central banks in the Middle East and North Africa (MENA). We distinguish the pattern of monetary policy operations of the liquidity providing central banks of the large industrialized countries (creditor central banks) and the liquidity absorbing central banks of emerging market economies (debtor central banks). Many debtor central banks provide liquidity through foreign exchange intervention in reaction to foreign exchange inflows. If the respective liquidity expansion is regarded as a threat to domestic price and financial stability, liquidity is partly absorbed through sterilization operations. The paper finds that most MENA countries are debtor central banks due to a general pattern of excessive liquidity creation as well as due to country specific reasons.
Subjects: 
Emerging Markets
Debtor Central Banks
Foreign Exchange Inflows
Sterilization
JEL: 
F31
Document Type: 
Working Paper

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