How exactly does central bank intervention in forex work?

B

Bakinec

Just curious.

Specifically, I want to know if they have a specific time of day when they will be intervening? :D

This right here will be a money maker for some time to come. As long as they make injections like the one they did this night. Oh mama mia...

yen has been a turtle all this time, now things changed.
 
Quote from Gubinec:


yen has been a turtle all this time, now things changed.
More...

One Swallow never makes a summer just remember that.

The Yen is strong and has been strong for a reason so just because BOJ moves in doesn't really alter the market's internal structure that much.

And don't forget the BOJ is nothing and I mean NOTHING against the market. Sure, it can set some fireworks off every now and then but when it stops what then...........See how successful the Swiss National Bank has been recenly, god knows how much money they've blown and it had NO impact over the long term but of course shook things up for a day or so now and then.
 
Quote from AK100:

One Swallow never makes a summer just remember that.

The Yen is strong and has been strong for a reason so just because BOJ moves in doesn't really alter the market's internal structure that much.

And don't forget the BOJ is nothing and I mean NOTHING against the market. Sure, it can set some fireworks off every now and then but when it stops what then...........See how successful the Swiss National Bank has been recenly, god knows how much money they've blown and it had NO impact over the long term but of course shook things up for a day or so now and then.
More...

I agree with you however the question is. Do you ascribe the same power or lack of power to US central Bank ?

And what would be ramifications of that :cool:
 
Greetings,

If you are truly interested in understanding how the Central Banks operate to create money out of thin air, and take money out of your pockets, then take a good look at the video below. This video will no doubt change the way you think about money for sure. Better than an MBA in Economics, it is an education you can use to improve your trading results, and well worth the time.

If the link below doesn't work, then just google "Money Masters" How International Banks.....


http://video.google.ca/videosearch?q=the+money+masters&hl=en&emb=#
 
i don't have the answer to your question
i don't trade the yen but remember the last time they intervened, and while the
BoJ announced is would be intervening, don't know there was a date and time
pre-announcement for that intervention -
but it would obviously be desirable information, to be able to make a mega-trade
as well as protecting one's ass

'Outline of the Bank of Japan's Foreign Exchange Intervention Operations' July 2000
http://www.boj.or.jp/en/type/exp/faqkainy.htm
includes: 'A Day in the Life of the Bank of Japan's Foreign Exchange Dealers'
by Masafumi Yamamoto, Foreign Exchange Division


attached: 'Intervention Policy of the BoJ: a unified approach.'
Michel Beine, Oscar Bernal, Jean-Yves Gnabo, Christelle Lecourt. Dec 22/06
 

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