Efficacy of central bank intervention in the foreign exchange market of the BRICS countries

Central bank intervention plays a major role in managing exchange rate volatility. In comparison to advanced economies, emerging market economies are generally active the forex as excessive volatility of local currency persists. The BRICS countries (Brazil, Russia, India, China and South Africa) influencing international financial system. paper empirically investigates efficacy central case countries. It has been observed that did not impact level; however, it reduced rate. Furthermore, interventions spot derivatives markets equally effective containing volatility, except Africa. identified sovereign yield spread impacts returns Africa Brazil Russia.