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Exchange Rates: Interventions in Currency Markets

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 8 Nov 2019

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In this revision topic video we look at the reasons why a central bank / government might opt for a managed floating currency system and the options for intervention in currency markets if they want to influence the level of the exchange rate.

A managed-floating currency occurs when the central bank may choose to intervene in the foreign exchange markets to affect the value of a currency to meet specific macroeconomic objectives.

Exchange Rates: Interventions in Currency Markets
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