The official settlements balance records the net impact of the central bank's interventions in the foreign-exchange market in support of the local currency.

Question

Quizplus · Accepted Answer

The official settlements balance, part of the balance of payments, indeed records the net effect of a central bank's activities in the foreign exchange market, particularly its interventions to support the value of the local currency. This includes buying or selling the local currency to influence its value.

The Official Settlements Balance Records the Net Impact of the Central