I need an example of a recent nation's foreign exchange market intervention ?
And what was the government’s justification? I need to find something for school, but I cannot find anything. Please help.
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And what was the government’s justification? I need to find something for school, but I cannot find anything. Please help.
You didn’t find anything recent simply because no major interventions happened recently. Generally speaking, interventions have long since fallen out of fashion. As Robert Mundell showed back in 1960s, a government and a central bank acting in concern have a good shot at controlling two, any two, of three things, inflation, unemployment, and the exchange rate. The industrialized nations long since realized that inflation and unemployment matter more than the exchange rate, so the intervention business has all but stopped.
The last large interventions in major currencies were those undertaken by G7 countries according to the Plaza Accord of 1985 and the Louvre Accord of 1987.
You could say that Bank of China (Chinese central bank) intervenes in foreign exchange market, but this would be stretching the definition of an intervention. Interventions are usually thought of as short-run affairs, while BOC’s massive purchases of U.S. dollars (suffice it to say that BOC is now second-largest foreign holder of U.S. government debt, Bank of Japan being the largest) have been going on for almost two decades now…
Also, some countries still maintain "currency bands"; their central banks intervene when the currency falls out of a specified range. So your best bet at finding a recent example of an intervention is to look for countries that maintain bands. It’s quite possible that when you do find some information, it will be about a country you’ve never heard of before in your life…