![cover image](https://wikiwandv2-19431.kxcdn.com/_next/image?url=https://upload.wikimedia.org/wikipedia/commons/thumb/4/4a/Exchange_Money_Conversion_to_Foreign_Currency.jpg/640px-Exchange_Money_Conversion_to_Foreign_Currency.jpg&w=640&q=50)
Currency intervention
Monetary policy operation / From Wikipedia, the free encyclopedia
Dear Wikiwand AI, let's keep it short by simply answering these key questions:
Can you list the top facts and stats about Currency intervention?
Summarize this article for a 10 year old
Currency intervention, also known as foreign exchange market intervention or currency manipulation, is a monetary policy operation. It occurs when a government or central bank buys or sells foreign currency in exchange for its own domestic currency, generally with the intention of influencing the exchange rate and trade policy.
![](http://upload.wikimedia.org/wikipedia/commons/thumb/4/4a/Exchange_Money_Conversion_to_Foreign_Currency.jpg/640px-Exchange_Money_Conversion_to_Foreign_Currency.jpg)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/2/26/HR3004_of_2005_%28CHINA_Act%29_Press_Conference.jpg/320px-HR3004_of_2005_%28CHINA_Act%29_Press_Conference.jpg)
Policymakers may intervene in foreign exchange markets in order to advance a variety of economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives are likely to depend on the stage of a country's development, the degree of financial market development and international integration, and the country's overall vulnerability to shocks, among other factors.[1]
The most complete type of currency intervention is the imposition of a fixed exchange rate with respect to some other currency or to a weighted average of some other currencies.