Why many industrialized countries do not often intervene in

Why many industrialized countries do not often intervene in the foreign exchange market? Please type the answer with the keyboard?

Solution

Ans. Many industrailized countries have free floating exchange rate systems and also in industrialized economies, the monetary institutions are independent and take its own decisions.  In a free-floating regime, which applies to the euro area, interventions take place on only nine percent of the observation days. They allows their currencies to freely float against other curriencies based on demand and supply in forex market. They are of the view that allowing currencies to freely float allows them to have their real values or the real purchasing power of the currencies. They show the true rate of exchange between different currencies.