Nonsterilized intervention

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Nonsterilized intervention

Taking an action in the foreign exchange market without adjusting for changes in money supply.

Nonsterilized Intervention

A central bank's attempt to influence exchange rates by refusing to buy or sell assets or currencies. This allows the money supply to change without interference of the central bank. See also: Sterilized Intervention, Floating Currency.
References in periodicals archive ?
Likewise, undertaking open-market operations in securities to affect an exchange rate is much like conducting nonsterilized interventions.
3) Most of these purchases appeared as an increase in the Swiss monetary base, so for the most part, the operation consisted of nonsterilized interventions (figure 1).
Lesson #2: Nonsterilized Intervention Can Create Policy Dilemmas