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If the won were increasing in value relative to the yuan, would the Korean central bank intervene in exchange markets to buy won in exchange
If the won were increasing in value relative to the yuan, would the Korean central bank intervene in exchange markets to buy won in exchange for yuan or to sell won in exchange for yuan? Briefly explain. If the won appreciated against the yuan, the Korean central bank would want to buy won in exchange for yuan. Doing so would decrease the supply of won, thereby lowering the exchange rate between the won and the yuan
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