Exchange Stabilization Fund (ESF)
Money available to the U.S. Treasury Department primarily used for participating in the foreign-exchange market in an attempt to maintain currency stability. It holds U.S. dollars, foreign currencies and special drawing rights. Investopedia Says:
The ESF allows the U.S. government to intervene in the forex market to influence exchange rates, usually the domain of the central bank, without affecting the domestic money supply. This money is also used to provide financing to foreign countries. Related Terms:
Central Bank
Currency
Exchange Rate
Monetary Policy
Special Drawing Rights - SDR
U.S. Treasury |