Central Bank Intervention

Posted by Ishamayrub Tuesday, August 25, 2009 at 9:23 AM

Central Bank Intervention occurs when governments attempt to manipulate the value of their national currencies - they either flood the market to lower prices or buy up currency in order to inflate prices. A central bank may intervene if it's currency is weakening, in order to control inflation or to stabilize the currency in times of high volatility.

 

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