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.
Moreover, when the exchange rate market disturbance is neither domestic in origin nor monetary in nature, non-sterilized intervention
conflicts with price stability.
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.