2007-12-10 22:27:13 · 2 answers · asked by topink 6 in Business & Finance ➔ Other - Business & Finance
It simply means that they are selling dollars in large quantities. No, they aren't deliberately lowering the price. The price is set by the market. They can only get what buyers are willing to pay. However, selling large quantities can have the effect of reducing the price because the supply of dollars that are available for sale may increase faster than the demand to buy them.
2007-12-11 04:14:44 · answer #1 · answered by The Shadow 6 · 0⤊ 0⤋
I have limited knowledge on this but...,
countries can effect and do try to effect the market value of their currency by buying and selling currency, but I thnk market forces are stronger and eventually the country loses its shirt, this happenned when the UK was pushing one way and George Soros was pushing the way the market was heading. "Soros broke the bank."
I know interest rates, interest rate policy, balance of trade, GNP growth have a lot to do with currency valueation.
2007-12-11 00:04:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋