Exchange Rate Intervention
The monetary authority of a country (usually the country’s central bank) will intervene in the forex markets in order to counter disorderly market conditions. The authority will buy or sell its currency in order to bring the exchange rates up or down. Interventions can be coordinated with the central banks of other countries. In the US, the Federal Government will do this on through spot transactions instead of forward transactions.
→ NOTE: http://www.ny.frb.org/aboutthefed/fedpoint/fed44.html
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