If the Reserve Bank of Australia wanted to increase the value of the Australian dollar relative to other currencies,it would sell Australian dollars in foreign currency markets.

Question

Quizplus · Accepted Answer

If the Reserve Bank of Australia wanted to increase the value of the Australian dollar relative to other currencies, it would actually buy Australian dollars in foreign currency markets. This would increase the demand for Australian dollars, which in turn would increase its value. Selling Australian dollars would have the opposite effect and decrease its value.

If the Reserve Bank of Australia Wanted to Increase the Value