Foreign Exchange Intervention Strategies

Foreign Exchange (FX) intervention is a potent and often controversial policy tool used by central banks to influence the value of their currency, counter disorderly market conditions, or defend a specific exchange rate regime. This specialized course provides a practical and policy-focused deep dive into the objectives, mechanics, and effectiveness of various FX intervention strategies. Participants will explore the theoretical conditions under which sterilized and unsterilized interventions are employed, analyze the operational execution of trades in complex global markets, and evaluate the communication and signaling challenges critical to successful policy implementation.