Currency exchange is just like any other transaction, right? Someone wants to buy dollars with Euros, someone else wants the inverse, and they trade. How would a government manage to effectively regulate all of that, when those transactions are happening all over the world?
In: Economics
An example of this is Hong Kong. They keep large reserves of HKD and USD on hand so they can buy/sell whenever the ratio between the two drifts too far from their desired peg.
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