The Theoretical Analysis Of The Central Bank's Intervention In The Foreign Exchange Market

The Central bank exchange rate intervention has a long history in western countries. It has been a important way to adjust the macro-economy and a important variable to affect the foreign exchange market. In our country, since the financial system reform in 1994, the exchange rate intervention of our central bank has been a fact and a necessary method to adjust our country economy.First, this article introduces the necessity, purpose, time, method and effect of foreign exchange intervention, then based on the present situation and problems in our country, we raise some suggestions to our central bank intervention.