vaihtuneet

Vaihtuneet, also known as exchange strikes or exchange interventions, are a monetary policy tool used by central banks to influence the exchange rate between two currencies. The term "vaihtuneet" is derived from Finnish and has been adopted by the European Central Bank (ECB) as a description for this specific type of intervention.

During a vaihtuneet, the central bank, typically the ECB, trades currencies on the foreign exchange market, buying or selling a specific currency with the aim of affecting its exchange rate. This intervention is usually carried out discreetly, without disclosing the action in advance, to avoid influencing market expectations and maintain the effectiveness of the tool.

Vaihtuneet can be employed for various reasons, including countering extreme exchange rate movements that might destabilize the economy or non-market value exchange rates. By intervening in the foreign exchange market, the central bank can help to stabilize the exchange rate, manage inflation expectations, and maintain market confidence.

It is worth noting that the effectiveness and potential consequences of vaihtuneet are subject to ongoing debate among experts and economists. Some argue that such interventions can have unintended effects on the overall economy and exchange rate dynamics. The ECB has ceased to disclose the specifics of its foreign exchange interventions since 2000, as the ECB is situated under the independent and nonprofit purview of the European Community