Exchange Market Intervention In both panels, the imaginary country of Genovia is trying to keep the exchange rate of the geno fixed at US$1.50 per geno. In panel (a), the equilibrium exchange rate is below $1.50, leading to a surplus of genos on the foreign exchange market. To keep the geno from falling below $1.50, the Genovian government can buy genos and sell U.S. dollars. In panel (b), the equilibrium exchange rate is above $1.50, leading to a shortage of genos on the foreign exchange market. To keep the geno from rising above $1.50, the Genovian government can sell genos and buy U.S. dollars.