There are several ways for the government to intervene in the exchange rate. One is indirect intervention. For example, the government will indirectly affect the exchange rate by adjusting monetary policy, or adjusting foreign trade policy and foreign investment policy, or the government will intervene in the exchange rate through verbal warnings.

The other is direct intervention, that is, the government, as the main body of market transactions, directly trades in the market, thus realizing the intervention of foreign exchange market prices. Direct intervention in the market is generally very rare in developed countries, and the total spot is not large, and the transaction is relatively transparent. The Bank of China has the strongest direct intervention in exchange rate, and has been controlling the RMB exchange rate through direct intervention in recent years. China's huge foreign exchange reserves have always been formed by the central bank buying dollars in large quantities through the market. In this process, the central bank has put in a large amount of RMB base currency. The direct intervention of the central bank in the market has slowed down the appreciation of the RMB exchange rate and ensured the relative stability of the RMB exchange rate against the US dollar.