FX · FX specialist topics · lesson 8 of 9 · 9 min read · David Alexander
When the central bank is the other side of your trade
intervention
A central bank transacting in its own currency to influence its level, rather than to make a profit. It ranges from verbal warnings through occasional buying and selling to a hard floor or peg defended with the balance sheet. A defended level looks like unusually low volatility until the defence stops.
This lesson is part of the advanced modules.
Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.