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Investments glossary

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.

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