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Exchange-market intervention |
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Exchange-market interventionUsually done by a country's central bank, this is the purchase and sale of the country's currency on the exchange market in order to influence or fully determine its price. These transactions, unless they are sterilized, change the monetary base of the country and thus its money supply.Similar MatchesEnvironmental protection argument for a trade interventionEnvironmental protection argument for a trade interventionThe view that trade should be restricted in order to help the environment. Examples include embargos on imports made from endangered species, limits on imports produced by methods harmful to the atmosphere, and restrictions on investment into locations with lax environmental standards. This is usually a second-best argument. Central bank interventionCentral bank interventionSee exchange market intervention. Nonsterilized interventionNonsterilized interventionTaking an action in the foreign exchange market without adjusting for changes in money supply. Sterilized interventionSterilized interventionForeign exchange market activity by which monetary authorities insulate their domestic money supplies from the foreign exchange transactions with offsetting sales or purchases of domestic assets. Intervention currencyIntervention currencyA currency that is commonly used by central banks for exchange market intervention. See reserve currency. Further SuggestionsCentral bank interventionIntervention Unsterilized intervention |
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