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 as

Question

Quizplus · Accepted Answer

A currency intervention occurs when a government or central bank buys or sells foreign currency in exchange for their own domestic currency in the foreign exchange market. This is done to influence the exchange rate and stabilize or change the value of their currency relative to others.

When a Government Buys or Sells Foreign Exchange in the Foreign