Sterilized Intervention

[Tobi]

A sterilized intervention is another form of operational intervention by the Central Banks. The term “sterilization” is taken from medical sciences. In this context it means that a Central Bank conducts operations which affect the currency rates in the Forex market. However, at the same time it takes measures to ensure that none of its activities in the market have any effect on trade and commerce within its home country. Thus it effectively sterilizes the intervention as far as the home country is concerned

 

[gwolf666]

A "sterilized intervention" is a form of operational intervention by central banks. The term "sterilization" comes from medical science and, in this context, means that a central bank carries out operations that affect exchange rates in the Forex market, but takes measures to ensure that these activities have no impact on the trade and economy of its country. In this way, the intervention is "sterilized" and does not directly affect the domestic economy. This approach seeks to manage the foreign exchange market without interfering with local economic activity.

 

[Augusta]

Well, there's no issue with government approach that seeks to manage the foreign exchange market without interfering with local economic activity. It can be adopted