Nonsterilized 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 ?
Lesson #2: Nonsterilized Intervention Can Create Policy Dilemmas
Nonsterilized intervention stood a better chance of creating the desired outcome but would have left a foreign-exchange exposure on the Bank's balance sheet.
Nonsterilized interventions, like monetary-policy operations in general, can, indeed, affect exchange rates, but they also can affect domestic inflation and unemployment rates.
Nonsterilized Intervention, Foreign Exchange, and the Federal Funds Rate
(2001) "Sterilized Intervention, Nonsterilized Intervention, and Monetary Policy." Federal Reserve Bank of Cleveland Working Paper 0110 (July).
However, nonsterilized intervention does allow capital inflows to exert a downward pressure on domestic interest rates.
[1] Nonsterilized intervention seems completely redundant to open-market operations in domestic securities.