Under a fixed exchange rate system, the government bears the responsibility to ensure that the BOP is near zero. If the overall balance does not approximate zero, the government is expected to intervene in the foreign exchange market by buying or selling official foreign exchange reserves. If the overall balance is GREATER THAN ZERO, there will be more the domestic currency in the foreign exchange market. To preserve the fixed exchange rate, the government must then intervene in the foreign exchange market and domestic currency for foreign currencies or gold so as to bring the BOP back near zero. demand for; buy supply of; sell supply of; buy demand for; sell