If the government wants to increase the value of its currency in foreign exchange markets, it can limit the ability of foreigners to buy its currency.

Question

Quizplus · Accepted Answer

Limiting the ability of foreigners to buy a currency would typically decrease demand for that currency, potentially lowering its value rather than increasing it. To increase the value of its currency, a government might instead intervene in foreign exchange markets by buying its own currency or increasing interest rates to attract foreign capital.

If the Government Wants to Increase the Value of Its