Nonsterilized intervention

(redirected from Non-Sterilized Intervention)

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 ?
in Japan, the process is called non-sterilized intervention.
Sterilized intervention affects long run exchange rates much less than non-sterilized intervention
Given the low level of interest rates, all tools at the BOJ's disposal, including non-sterilized intervention should be deployed.
Eventually these new institutions could grow large and end up under the insurance umbrella of the central bank (by the principle that they are "too large to fail"), recreating all the problems associated with non-sterilized intervention.
Among the three channels, the monetary channel is rarely mentioned except for the currency board system, because non-sterilized interventions are less common nowadays.
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