When a government buys or sells foreign exchange in the foreign exchange market in order to alter the supply or demand for currency and push the exchange rate in a desired direction, this is known
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Question

Quizplus · Accepted Answer

When a government buys or sells foreign exchange in the foreign exchange market with the objective of influencing the exchange rate, it is called a currency intervention. This may be done in order to maintain a certain level of competitiveness for their trade, or to combat excessive appreciation or depreciation of the currency.

When a Government Buys or Sells Foreign Exchange in the Foreign