Cryptocurrency Q&A
Is central bank intervention in the foreign exchange market necessary?
Is central bank intervention in the foreign exchange market necessary?
Riccardo
Fri Jan 24 2025
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6
answers
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I'm wondering if it's really necessary for central banks to intervene in the foreign exchange market. I want to understand the need and rationale behind such interventions.
6 answers
SakuraSpiritual
Sun Jan 26 2025
The Federal Reserve operates within a managed float exchange rate system.
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charlotte_bailey_doctor
Sun Jan 26 2025
This system allows for some flexibility in exchange rates but also permits intervention when deemed necessary.
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Margherita
Sun Jan 26 2025
One strategy the Fed might employ to stimulate the U.S. economy is by influencing the foreign exchange market.
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CryptoVisionaryGuard
Sun Jan 26 2025
By intervening in this market, the Fed can potentially depreciate the value of the U.S. dollar.
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KpopHarmonySoulMate
Sat Jan 25 2025
A weaker dollar can make U.S. exports more competitive internationally, boosting economic activity.
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