Question: The foreign currency intervention is the active management, manipulation , or intervention in the market's valuation of a country's currency. It is the component of
The foreign currency intervention is the active management, manipulation , or intervention in the market's valuation of a country's currency. It is the component of currency valuation and forecast that cannot be overlooked. The value of a country's currency is of significant interest to an individual government's economic and political policies and objectives, those interests sometimes extend beyond the individual country but may reflect some form of collective country interest. Many countries have moved from fixed exchange rate values, governments and central bank authorities of the multitude of floating rate currencies still privately and publicly profess what value their currency "should be holding. Regardless of whether the market for the currency agrees at that time. Explain what the motivations for Currency Market Intervention are and how this effects economic growth? [note 125+ words]
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