Unsterilized intervention

(redirected from Unsterilized Interventions)

Unsterilized intervention

Foreign exchange market intervention in which the monetary authorities have not insulated their domestic money supplies from the foreign exchange transactions.

Unsterilized 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 ?
Central banks aim at sterilizing their intervention operations because unsterilized interventions go against the monetary policy objectives pursued by the central banks To the extent that central banks want to undertake a change in monetary policy to influence the exchange rate they would do this through their usual means, which in most cases is operations in the domestic money market, rather than waiting for it to happen as a by-product of foreign exchange intervention.