Currency intervention still evolving. (Federal Reserve's use of options to smooth dollar volatility) (column)

Futures (Cedar Falls, Iowa), January, 1989 by Tanzy, Kathleen

Currency intervention still evolving

What the Group of Seven (G-7) is not prepared to reveal in its communiques early this year is the continuing evolution of currency intervention.

Eventually, central banks may extend their dollar purchases and sales to futures and options. And, with 24-hour trading, trailing the sun may prove to be the more efficient means of influencing markets.

As of 1988, the U.S. Federal Reserve Board designated several currency traders at the New York Federal Reserve Bank to become the system's first official "experts" in currency futures and ...