central bank intervention

central bank intervention definition - business

central bank intervention

The buying and selling of domestic or foreign currencies by a central bank in an effort to influence interest rates or currency exchange rates. For example, the Federal Reserve might intervene in the foreign exchange market in order to dampen rapid fluctuations or signal the markets that recent exchange rate movements do not indicate a fundamental trend. See also foreign exchange desk 2.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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