When a central bank takes action to offset or reduce any volatility in the currency,this is called:

Name: When a central bank takes action to offset or reduce any volatility in the currency,this is called:
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

FX smoothing refers to the process where a central bank intervenes in the foreign exchange market to reduce fluctuations in currency values. It is done by purchasing or selling their currency in the market to balance the supply and demand and maintain stable exchange rates.

When a Central Bank Takes Action to Offset or Reduce