Answer: The currency strengthens.
Thu Aug 14 2003 14:30:00 GMT-0400 (Eastern Daylight Time) · The central bank influences interest rates by expanding or contracting the monetary base which consists of currency in circulation and banks reserves on deposit at the central bank . Central banks have three main methods of monetary policy: open market operations the discount rate and the reserve requirements .
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.. Policymakers may intervene in foreign exchange markets in order …
Money creation – Wikipedia
Open market operation – Wikipedia
Central bank – Wikipedia
Interest rate – Wikipedia
Standard central bank monetary policies are usually enacted by buying or selling government bonds on the open market to reach a desired target for the interbank …
The central bank’s activities directly affect interest rates through controlling the base rate and indirectly affect stock prices the economy’s wealth and …
An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks . The central bank can ei…