Unsterilized Foreign Exchange Intervention
The term unsterilized foreign exchange intervention refers to how a country's monetary authorities influence exchange rates and its money supply—by not purchasing foreign or by not selling domestic currencies or assets. This kind of approach is considered passive to exchange rate fluctuations, allowing for fluctuations in the monetary base.Unsterilized foreign exchange interventions are also called nonsterilized interventions and can be contrasted with sterilized interventions.