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Difficult to maintain the fixed exchange rate

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Reference no: EM131918416

A fixed exchange rate country experiences upward pressure on the exchange rate value of its currency. The central bank chooses to intervene in the market to maintain its fixed exchange rate. How would the central bank go about intervening? If the pressures for the currency to appreciate persist, would it be difficult to maintain the fixed exchange rate?

Reference no: EM131918416

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