currency intervention

Currency intervention occurs when a country's government or central bank actively buys or sells its own currency in the foreign exchange market to influence its value. This is often done to stabilize the currency, control inflation, or adjust trade competitiveness. For example, if a country wants to lower its currency value to boost exports, it might sell its currency and buy foreign currencies. Conversely, if it seeks to strengthen its currency to reduce inflation, it might buy its own currency. These actions can impact the economy, international trade, and investor confidence.