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sterilized intervention

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Financial Dictionary

Sterilized Intervention

A method used by monetary authorities to equalize the effects of foreign-exchange transactions on the domestic monetary base by offsetting the purchases or sales of domestic assets.

Investopedia Commentary

Sterilized intervention is a way for a country to alter its debt composition without affecting its monetary base. It is used as a tool to counter undesirable exchange-rate movements.

Related Links

Floating And Fixed Exchange Rates
Dual And Multiple Exchange Rates
What Are Central Banks?
Formulating Monetary Policy

See also: Central Bank, Exchange Rate, Federal Reserve System, Monetary Policy, Sterilization, Treasury Bill

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