The government frequently intervenes in the foreign exchange market to prevent dramatic exchange rate changes. When a foreign currency is overvalued, it is sold, and when it is undervalued, it is purchased.
Foreign exchange market is the exchange of currencies of one country from another country. It is made up of from different markets or from different country's market.
The financial institute do provides the exchange of the currencies like airport, banks, and others.
Thus, The government frequently intervenes in the foreign exchange market.
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