No country has ever borrowed foreign exchange in order to intervene in the foreign exchange market due to the inability of countries to find commercial banks willing to do this sort of lending.

Question

Quizplus · Accepted Answer

Countries have borrowed foreign exchange from commercial banks and other sources to intervene in the foreign exchange market, often to support their own currency or to stabilize exchange rates. This practice is part of broader foreign exchange intervention strategies.

No Country Has Ever Borrowed Foreign Exchange in Order to Intervene