What are the means by which the state intervenes in the rise and fall of the exchange rate?

Intervening in the exchange rate is a fundamental measure for the protection of the national currency! Europe will intervene, Japan often intervenes, and the United States is also intervening in the exchange rate, which is a question of whether it can intervene! Therefore, the explanation made in this matter is not intentional.

Especially in the era of financial crisis, it is extremely normal to intervene in the exchange rate in order to ensure economic development and import and export. It is well known that the yen is recognized as one of the countries that intervene the most. Foreign exchange reserves will not be used here, because many people think that the dollar is depreciating, why should we buy treasury bonds, this is another protection measure for the economy of many countries, we have losses when the US economy is bad, but in the same way, we will have a huge gain!

There's so much involved, that's all I can say!

The state generally intervenes in the exchange rate in three direct ways, technically:

1. By adjusting the deposit and loan interest rates of commercial banks, the currency will be affected from the perspective of market efficiency**;

2. Adjust the reserve requirement ratio to directly and rigidly control the amount of currency entering the market;

3. Use foreign exchange reserves to intervene in the exchange rate, if the RMB appreciates too fast in a certain period of time, it can cool down the RMB appreciation too quickly by selling a large number of RMB ** foreign currencies in the foreign exchange market.

Western countries also sometimes affect the exchange rate of the corresponding currency by controlling the rating agencies to rate some small and medium-sized sovereign countries.

1) Purpose: To maintain the external stability of the country's exchange rate under normal circumstances, so that the exchange rate will develop in a direction that is beneficial to the country's economy.

2) Measures: The discount policy, that is, by adjusting the discount rate to affect the inflow and outflow of capital, resulting in changes in the exchange rate of Bu Yuwang, is an indirect intervention.

Foreign exchange policy, that is, the authorities buy and sell foreign exchange directly in the foreign exchange market, so as to regulate the exchange rate, is a direct emergency measure.

Foreign exchange control, that is, through the direct control or distribution of foreign exchange supply and demand to maintain the exchange rate, its effect is direct and effective.

In order to maintain the exchange rate at the desired level, the monetary authorities of various countries, the central bank.

The impact of the intervention on the exchange rate will be more or less intervening in the foreign exchange market, and the central bank will intervene to change the supply and demand situation in the foreign exchange market, which will have an important impact on the short-term trend of the exchange rate.

Extended information: 1. "One strengthening", that is, strengthening the functions related to the formulation and implementation of monetary policy. The People's Bank of China should vigorously raise the level of formulating and implementing monetary policy, and flexibly use various monetary policy tools such as interest rates and exchange rates to implement macroeconomic regulation and control. Strengthen the currency market.

The study and formulation of rules, strengthen the supervision and monitoring of the money market, foreign exchange market, ** market and other financial markets, pay close attention to the relationship channels between the money market and the real estate market, the ** market, and the insurance market, relevant policies and risk control measures, and dredge the monetary policy transmission mechanism.

2. The central bank has improved the macroeconomic regulation and control system, innovated the mode of regulation and control, built a policy coordination and work coordination mechanism for development planning, finance and finance, strengthened the ability of economic monitoring and early warning, established and improved the working mechanism of research on major issues and policy reserves, and enhanced the forward-looking, targeted and coordinated nature of macroeconomic regulation and control. Focusing on the guiding principles and tasks of the financial work of the Party and the state, strengthen and optimize the functions of financial management, enhance the coordination of monetary policy, macro-prudential policy, and financial regulatory policy, strengthen macro-prudential management and the responsibility of preventing systemic financial risks, and maintain the bottom line of preventing systemic financial risks from occurring in late debate. In accordance with the streamlining of administration and decentralization, the combination of decentralization and regulation, and the optimization of services.

The work requirements for the transformation of functions are to further deepen the reform of the administrative examination and approval system and the reform of the financial market, and strive to standardize and improve the administrative examination and approval behavior and improve the efficiency of administrative examination and approval. Accelerate the promotion of "Internet + government services", strengthen supervision during and after the event, and effectively improve the quality of service.

and effects. We will continue to improve the financial legal system and do a good job of "delegating power, delegating power, and providing services."

Institutional guarantees for reform.

It will provide strong support for stabilizing growth, promoting reform, adjusting the virtual structure, and benefiting the people's livelihood, and promote the sustained, stable and healthy development of the economy and society.

Operating environment: iPhone 12, People's Bank of China.

to prevent exchange rates**. The rationale for this approach is that higher interest rates can increase the value of the national currency, attracting more investors to invest in the national currency, thereby increasing foreign exchange reserves and stabilizing the exchange rate. However, such an approach could also lead to a slowdown in the domestic economy, as high interest rates would dampen demand for investment and consumption, reducing economic growth.

Therefore, the government needs to weigh the impact of interest rate adjustment on economic growth and exchange rate stability, and take appropriate measures to balance the two.

The answer upstairs was excellent. Thank you.

Since July 21, 2005, the People's Bank of China announced that China has begun to implement a managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies. At present, most countries have a managed floating exchange rate system, and there is no such thing as an absolute fixed exchange rate system or an absolute floating exchange rate system. Both the fixed exchange rate system and the floating exchange rate system have advantages and disadvantages, and each country chooses to implement a fixed or floating exchange rate system according to its actual economic situation.

Floating Exchange Rate System:

It refers to an exchange rate system in which the exchange rate is completely determined by the supply and demand of the market, without any intervention. In view of the different ways in which floating exchange rates are managed and the degree of easing varies from country to country, there are many classifications of the system. According to whether to intervene or not, it can be divided into free float and management float.

According to the floating form, it can be divided into individual floating and joint floating. According to the different currencies that are pegged, they can be divided into pegged to a single currency floating and pegged to synthetic currency.