The FRED graph above shows the amounts of U.S. dollars bou…
The FRED graph above shows the amounts of U.S. dollars bought and sold by the Central Bank of Turkey in dashed line and the Central Bank of Mexico in solid line. Purchases are recorded as positive values (larger than zero), sales are recorded as negative values (smaller than zero), and the sum totals for each month are the data points shown in the graph. In October 2008, the Central Bank of Mexico sold 3 billion U.S. dollars while in December 2021, the Central Bank of Turkey sold 7 billion U.S. dollars. These interventions did not coincide with any actions in the treasury security markets to offset the effect on domestic money supply or interest rates. What was the intended objective of such government intervention, and what type of intervention was it?