How Does the Government Regulate Exchange Rates?
How Does the Government Regulate Exchange Rates?
For example, if it lowers the rate, that drives down interest rates throughout the U.S. banking system. It also reduces the supply of money. Both of these results make the dollar stronger relative to other currencies. That's because U.S. dollar-denominated credit has become more expensive.
At the same time, dollar-denominated assets generate a higher return. Both create more demand for the dollar, while taking it out of circulation. The laws of demand and supply tell you that less supply and more demand drives up the price.
When that happens to the dollar, it can purchase more foreign currency on forex markets.
Treasury Department Role
The Treasury Department is a government agency that also indirectly affects the exchange rate. It prints more money. This increases the supply and weakens the dollar. It can also borrow more money from other countries. That's done by selling Treasury notes. That not only increases the supply of money, it also increases the debt and both will send the dollar's value down.
The third government tool is expansionary fiscal policies. They weaken the dollar by increasing the money supply. But these policies can also improve economic growth. That often makes investors demand more dollars as a safe haven. It's like a vote of confidence in the economy.
Sometimes this demand is so high that investors overlook the low interest rate they are getting by investing in dollars or U.S. Treasurys. The demand is even greater than the expansion in the supply of dollars.
Exchange rates, Treasury notes, and foreign exchange reserves offer three ways to measure the value of the dollar. Although the government is powerful in influencing exchange rates, it is still forex trading that actually changes them.
The chart below shows the Trade Weighted U.S. Treasury Index from 2000 through today.
To continue reading, please go to the original article here:
https://www.thebalance.com/how-does-the-government-regulate-exchange-rates-3306087
Why Did Treasury Just Hire the Architect of the Gold-Backed Bond?
by Phoenix Capital Research Tuesday, Oct 06, 2026 - 8:20
In late September, Treasury Secretary Scott Bessent brought Judy Shelton into his office as Counselor to the Secretary. Most of the coverage treated it as a personnel note about a longtime gold advocate. I think the more useful question is a simple one: why would Treasury want her, and why now? Start with the problem Bessent is trying to solve.
Treasury has to sell trillions of dollars in long-term debt to finance a national debt that has passed $40 trillion.
The Final Move Before The Dinar Revalues?
The Dinar Den: 10-7-2026
The global financial community and foreign currency enthusiasts were recently taken by surprise by an unexpected policy shift from the Central Bank of Iraq (CBI).
In a move that blindsided many analysts who had been tracking Iraq’s economic reforms, the central monetary authority officially adjusted the exchange rate of the Iraqi dinar against the United States dollar.
KTFA
Wednesday Night Video
FRANK26…10-7-26….STRATEGIC STEP
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie and Omar in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#
Iraq’s Dollar Rate Increase Draws Lawmaker Backlash
2026-10-07 Shafaq News- Baghdad Iraq’s Finance Ministry said on Wednesday that it had adopted a base exchange rate of 1,500 Iraqi dinars per US dollar and suspended advance customs payments, prompting lawmakers to seek an emergency parliamentary session to reverse the currency decision.
What Makes The Federal Reserve Decide To Raise Or Lower Interest Rates?
Sep 28, 2026 Economic outlook Hilarey Gould Editorial staff, J.P. Morgan Wealth Management
As the United States’ central bank, the Federal Reserve (Fed) exists to promote the overall strength, stability and well-being of the U.S. economy.
As part of its monetary policy function, the Fed adjusts the federal funds rate to help meet its so-called dual mandate: controlling inflation and supporting maximum employment.
THE XRP STORY IS BECOMING MUCH BIGGER
“Ladies & Gentlemen, Start Your Engines!”
See what is converging?
Not rumor.
Not one announcement.
Architecture.
China’s New Gold System Takes Aim at the Dollar
Taylor Kenny: 10-7-2026
China is buying gold, reducing its reliance on U.S. debt, and expanding systems that could bypass the dollar. If this trend continues, the impact on inflation, retirement savings, and purchasing power could be enormous.
In a recent analysis by ITM Trading, financial experts explore how China’s persistent gold accumulation, massive infrastructure investments, and deliberate moves away from the U.S. dollar point toward preparation for a brand-new global monetary order.
Bruce’s Big Call Dinar Intel Tuesday Night 10-6-26
Transcribed By WiserNow Emailed To Recaps (INTEL ONLY)
Welcome everybody to the big call. It is Tuesday, October. Thank you, October 6, and you're listening to the big call. Thanks, everybody, for tuning in again. Yes, I am back for tonight's call, and expect to be here to take us all the way through the end of this thing that we're in right now. I don't know what else to call it, but thank you for joining us, everybody. I'm looking forward to my segment tonight, but I always look forward to hearing from Sue and Bob.
So let's take a look at where we are on the Intel side. First, I want to thank Sue and Bob for taking the call last Thursday night on the first. Taking that and doing a great job with the call and the Intel. And what I'm going to do is bring to you where I believe we are.
Good Afternoon Dinar Recaps,
GLOBAL DEBT RESET WATCH: IMF WARNS OF ENERGY AND DEBT SHOCK AS FED SIGNALS MORE RATE HIKES
The IMF is warning that energy costs and record public debt are threatening global growth just as new Fed minutes point toward another U.S. rate increase this year.
Coffee with MarkZ, joined by Zester. 10/07/2026
MarkZ Disclaimer: Please consider everything on this call as my opinion. Be sure to consult a professional for any financial decisions
MZ: No Andy this morning as he is on an airplane but expects to join us this evening. Decoding the exchange rate move to 1520, and more before Zester joins us to talk tokenization.
THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY
Ariel: Why you Should be Excited about this
10-7-2026
Why You Should Be Excited About This
Eighty-five billion in foreign currency reserves is the war chest that makes a revaluation defensible instead of speculativewhen the CBI moves the rate, those reserves are the guarantee that the new value holds against any market pressure or speculative attack.
Emailed to Recaps~ Thank you David
Reset Intelligence: Devalue, Delete, Revalue
By Reset Intelligence | @EXIT_FIAT
For about a week one theory has circulated in the dinar community: Iraq lowers the IQD first, deletes the zeros, and only then raises the rate.
This morning the first step happened. Iraq's Council of Ministers approved a new rate and the Central Bank adopted it: 1,500 IQD to the dollar buying from the Finance Ministry, 1,510 selling to the banks and 1,520 selling to the public.
Ariel: Cabinet Seating as Structural Trigger for the Iraqi Currency Reset
19-7-2026
The Connection Between The Cabinet Seating & The Currency Reset:
Cabinet Seating as Structural Trigger for the Iraqi Currency Reset — Full Mechanics, Sequencing, and Skeptic Dismantlement
THE CORE MECHANISM: WHY A PARTIAL GOVERNMENT CANNOT PULL THIS TRIGGER
Strip away the noise and the connection is mechanical, not mystical.
Iraq’s 2027 Budget Draft Sets 217T Dinar Spending
2026-10-06 / 05:08 Shafaq News- Baghdad Iraq’s draft 2027 federal budget totals 217 trillion dinars ($164.9B), with a projected deficit of 50 trillion dinars ($38B), parliamentary Finance Committee member Abbas Hayal told Shafaq News on Tuesday.
Good Morning Dinar Recaps,
INDIA RESET WATCH: RBI HIKES RATES AS RUPEE NEARS RECORD LOW
India’s central bank has begun tightening policy again, but the rupee’s continued weakness shows how powerful global energy, capital-flow and dollar pressures have become.
How Wars And Geopolitical Conflicts Can Affect Stock Market Performance: What History Shows And How Investors Can Prepare For Volatility
Sep 29, 2026 Sergei Klebnikov Editorial Staff, J.P. Morgan Wealth Management
Geopolitical conflicts can drive short-term market volatility, but history shows the initial sell-off is often more about uncertainty than a lasting change in long-term returns.
The biggest risk to watch is whether the conflict disrupts critical supply chains in ways that spill into inflation, financial conditions, corporate earnings and broader economic growth – energy is one common channel, but not the only one.
GP Q: Same Week, Three Separate Stories
10-6-2026
Same week, three separate stories.
An overview: Easy to mash them into a “reset.” They are not one.
Seoul, 3 October. XRP Asia launched at the Grand Hyatt during Korea Blockchain Week.
KTFA
Tuesday Night Video
FRANK26….10-6-26….1500 TESTED
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie and Omar in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#
Iraq Considers Raising Official Dollar Rate To 1,500 IQD And Dropping Currency Zeros
Iraq Jawad Al-Samarraie October 6, 2026
Baghdad (IraqiNews.com) – Safaa Al-Jabri, member of parliament for the Al-Sadiqoun bloc and member of the Parliamentary Economic Committee, revealed that the federal government is reviewing a proposal to adjust Iraq’s official exchange rate from 1,310 dinars to 1,500 dinars per U.S. dollar, while advancing high-level deliberations to redenominate the national currency and potentially remove zeros.
What A High-Trust Society Looks Like Up Close
Notes From the Field (Schiff/Sovereign Man) October 6, 2026
[Editor’s note: This letter was written by Schiff Sovereign’s CEO, Viktorija, who is originally from Lithuania but splits her time between Mexico and Panama.]
The first thing I noticed at Seoul’s Iuncheon airport was the luggage. People had just left their suitcases sitting there— against pillars, next to benches, by the exits— and wandered off to the bathroom or to grab a coffee. Nobody looked back.
Rob Cunningham: The FIMA Engine and America’s $40 Trillion Elephant
10-6-2026
THE FIMA ENGINE & AMERICA’s $40 TRILLION ELEPHANT
America owes roughly $40 trillion.
Most folks hear that and figure there are only three choices:
Raise taxes. Print money. Go broke.
But let’s hold our horses.
MilitiaMan & Crew: Iraq's Economic Story: What's Actually Happening Right Now?
10-6-2026
The Crew: Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man
No drama. No intrigue. No songs and dances. Just straight, factual news that I read and interpret to the best of my ability after being an avid Dinar investor and insanely obsessed Dinarian for over 15 years.
Follow MM on X == https://x.com/Slashn
U.S. Sends Strong Warning To Financial Institutions Dealing With Iran
Money and business Economy News - Follow-up The U.S. Treasury Department has warned foreign financial institutions that they will face sanctions without prior notice if they continue to engage with Iran or its financial sector.
According to a notice issued by the Office of Foreign Assets Control (OFAC) of the Treasury Department on Monday, October 5, 2026, financial institutions that deal with sanctioned Iranian entities may be targeted at any time, and must cease these activities and relations immediately.
Good Afternoon Dinar Recaps,
GLOBAL TRADE RESET WATCH: BATTLE FOR BAB AL-MANDEB STRAIT THREATENS WORLD SHIPPING AND ENERGY SECURITY
Saudi-backed Yemeni forces are fighting to regain territory near a critical Red Sea shipping corridor as Houthi retaliation raises new risks for global trade and energy markets.
Ariel: The Zero-Deletion Window and the October 15th Convergence
10-6-2026
Opening The Books To The World: October 15th Looming
Iraq Cabinet Completion, Zero-Deletion Execution Window, and the October 15th Convergence
The Iraqi Parliament’s announcement that the full Cabinet will be confirmed as a single package this Thursday is not a procedural footnote it is the legal key that unlocks the deletion of the three zeros from the dinar.
Good Morning Dinar Recaps,
GLOBAL AI DEBT RESET WATCH: TECH GIANTS FLOOD BOND MARKETS WITH BILLIONS IN NEW AI BORROWING
The race to build artificial intelligence infrastructure is creating a new wave of corporate borrowing that is beginning to compete directly with governments for global investment capital.