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FX intervention

Central bank operations in the currency market that influence the exchange rate.

How to read the number

Worth separating from routine operations under a fiscal rule: those run on a schedule and make no attempt to set a level.

When the metric lies

The effect is bounded by the size of reserves and the turnover of the market. Against a steady outflow of capital an intervention buys time rather than a reversal.

Also known as: central bank currency operations

Related terms