Albuquerque, Paula C2010-12-142010-12-142005Albuquerque, Paula C.. 2005. "The interdealer market and the central bank intervention". Instituto Superior de Economia e Gestão - DE Working papers nº 9-2005/DE/CISEP0874-4548http://hdl.handle.net/10400.5/2678This paper studies the consequences of having either an interventionist or a non-interventionist central bank in the foreign exchange market, in a market microstructure framework. Although a simple one-period model is used, it allows the characterization of the effect of the central bank intervention on the behaviour of dealers. The model also identifies the conditions for the dealer that acts as the counterpart of the central bank to be better or worse than the other dealers. The price is expected to be more informative with an interventionist central bank.engForeign Exchange MarketInterdealer MarketCentral Bank InterventionInformationMarket Microstructureworking paper