Taking an action in the foreign exchange market without adjusting for changes in money supply.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved