Exchange Market InterventionIn both panels, the imaginary country of Genovia is trying to keep the value of its currency, the geno, fixed at US$1.50. In panel (a), there is a surplus of genos on the foreign exchange market. To keep the geno from falling, the Genovian government can buy genos and sell U.S. dollars. In panel (b), there is a shortage of genos. To keep the geno from rising, the Genovian government can sell genos and buy U.S. dollars.