No. 2223

WEDNESDAY, NOVEMBER 8, 2000

U.S. INTERVENES IN THIRD QUARTER TO BUY
1.5 BILLION EUROS NEW YORK FED REPORTS

NEW YORK – The U.S. monetary authorities intervened in the foreign exchange markets on one occasion during the third quarter, on September 22nd, buying a total of 1.5 billion euros, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress.

According to the report, the dollar appreciated 8.2 percent against the euro and appreciated 2 percent against the Japanese yen during the three month period that ended September 30, 2000.

The intervention was carried out by the foreign exchange trading desk at the New York Fed, operating in coordination with the European Central Bank (ECB) and the monetary authorities of Japan, Canada, and the United Kingdom. The amount was split evenly between the Federal Reserve System and the U.S. Treasury Department’s Exchange Stabilization Fund (ESF).

The report was presented by Peter R. Fisher, executive vice president of the New York Fed and the Federal Open Market Committee’s (FOMC) manager for the system open market account, on behalf of the Treasury and the Federal Reserve System.