Suppose government officials in a small open economy decided they wanted their currency to weaken in order to boost exports. What kind of foreign exchange market intervention would they have to make to cause their currency to depreciate? What would happen to domestic interest rates in that country if its central bank doesn't take any action to offset the impact on interest rates of the foreign exchange intervention? Government officials would have to sell Foreign currency in exchange for domestic currency in order for the domestic currency to weaken. This increases the supply of domestic currency, pushing down domestic interest rates without central bank intervention. Domestic currency in exchange for foreign currency in order for the domestic currency to weaken. This increases the supply of domestic currency, pushing down domestic interest rates without central bank intervention. Foreign currency in exchange for domestic currency in order for the domestic currency to weaken. This increases the demand for the domestic currency, pushing up domestic interest rates without central bank intervention. Domestic currency in exchange for foreign currency in order for the domestic currency to weaken. This reduces the supply of the domestic currency, pushing up domestic interest rates without central bank intervention