Hi,
I hope it is good place to this question. I come back to education of forex and now I don t want to make any pause. I am reading Complete Forex Education by a Pro Banker, and already I am on Chapter 3 Part 3 Look in rearview mirror. I don t understand how it happened when some country quote: If, for example, the rate of some national currency skewed more than 1% to one side or the other from the fixed rate, that country should use their own gold reserves to reestablish equilibrium.) I completely don t understand how it is done, what they do with own gold they buy deutsche mark? Could somebody explain it like to somebody who are not expert from economy
And another maybe similiar question about Soros and Bank of England so then he does it on GBP/USD and Sell GBP and BoE were defend how? Because I was read that then they ended gold reserve I thought nowadays banks using money not gold.
Thank you in advance for answers.
I hope it is good place to this question. I come back to education of forex and now I don t want to make any pause. I am reading Complete Forex Education by a Pro Banker, and already I am on Chapter 3 Part 3 Look in rearview mirror. I don t understand how it happened when some country quote: If, for example, the rate of some national currency skewed more than 1% to one side or the other from the fixed rate, that country should use their own gold reserves to reestablish equilibrium.) I completely don t understand how it is done, what they do with own gold they buy deutsche mark? Could somebody explain it like to somebody who are not expert from economy
And another maybe similiar question about Soros and Bank of England so then he does it on GBP/USD and Sell GBP and BoE were defend how? Because I was read that then they ended gold reserve I thought nowadays banks using money not gold.
Thank you in advance for answers.