Exchange market intervention definition

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Exchange market intervention

Exchange market intervention logo #21015Usually 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.
Found on http://www-personal.umich.edu/~alandear/glossary/e.html
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