How can government intervention affect the exchange value of a currency? Will the currency generally rise or fall if a government sells assets to foreigners? 

 What is the likely impact of domestic currency exchange rates decreasing on the national balance of payments? Define 'balance of payments' in your answer and identify its key accounts 

 Define and distinguish between 'hedgers' and 'speculators' operating in currency markets

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Government intervention can significantly affect the exchange value of a currency There are various ways governments can intervene and the impact on the currencys value depends on the specific circums... View the full answer