A foreign exchange intervention is:

Question

Quizplus · Accepted Answer

A foreign exchange intervention involves the buying and selling of currencies by a central bank or government in order to affect the supply or demand of a currency, which in turn impacts the exchange rate. This is typically done to prevent extreme changes in exchange rates or to support a particular exchange rate target. It is not synonymous with a fixed exchange rate and can be used in both crisis and non-crisis situations. Public statements may also be used as a policy tool, but they are not considered part of a foreign exchange intervention.

A Foreign Exchange Intervention Is