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It can step into FOREX as a buyer or seller. If it wanted to prevent a rapid depreciation, it would buy $A, thus reducing supply and adding upward pressure to the dollar. Conversely, it could also sell $A to prevent a rapid appreciation. Indirectly, it could use DMO to influence the value of...

There's good opinion articles by Ross Gittins on the SMH website.

I actually wanted to use it too for the HSC cos we analysed it in class, but then I found out it was on the Ext. 1 list. I'm still stuck for a second related text :cry:

Shirley?