Many Asian governments have attempted to promote their export competitiveness by holding down the value of their currencies through foreign exchange market intervention a What is the likely impact of this policy on Asian foreign exchange reserves On Asian inflation On Asian export competitiveness O...

a In order to hold down the value of their currencies Asian central banks must buy up foreign ...

Many Asian governments have attempted to promote their export competitiveness by holding down the value of their

Question:

Many Asian governments have attempted to promote their export competitiveness by holding down the value of their currencies through intervention.
a. What is the likely impact of this policy on Asian foreign exchange reserves? On Asian inflation? On Asian export competitiveness? On Asian living standards?
b. Some Asian countries have attempted to sterilize their intervention by selling bonds. What are the likely consequences of sterilization on interest rates? On exchange rates in the longer term? On export competitiveness?

Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...