Final answer:
Intermediation is the factor that does not affect currency valuation in the interbank market, unlike intervention, revaluation, and devaluation, which are actions that central banks may take to influence currency value.
Step-by-step explanation:
The student is asking about the factors that affect currency valuation in the interbank market. Among the factors provided - intervention, revaluation, devaluation, and intermediation - intermediation is the one that does not directly affect currency valuation in the interbank market. Intervention, revaluation, and devaluation are all actions that central banks may take to influence their currency's value. However, intermediation, which refers to the role of financial intermediaries in the market, does not have a direct impact on currency valuation.
A central bank might be concerned about exchange rates as they can affect the quantity of aggregate demand within an economy and cause fluctuations that disrupt international trade. Such fluctuations can also affect a nation's banking system, potentially leading to unsustainable balance of trade and problematic flows of international financial capital. A disequilibrium in the balance of trade and volatile capital flows can be precursors to a deep recession if foreign investors withdraw their money.