Why does the monetary authority inevitably enter the foreign exchange market to sell local currency and buy foreign exchange when the domestic currency is under the pressure of appreciation?
Generally speaking, appreciation is related to the money supply in the market. When faced with the pressure of appreciation, selling local currency in the foreign exchange market can increase the supply of local currency in the market. With more supply, the pressure of appreciation will naturally be smaller. You can go to Huitong. Experts answer questions every afternoon.