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Exchange-market intervention |
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Exchange-market interventionUsually done by a country's central bank, this is the purchase and sale of the country's currency on the exchange market in order to influence or fully determine its price. These transactions, unless they are sterilized, change the monetary base of the country and thus its money supply.Similar MatchesUnsterilized interventionUnsterilized interventionForeign exchange market intervention in which the monetary authorities have not insulated their domestic money supplies from the foreign exchange transactions. Intervention currencyIntervention currencyA currency that is commonly used by central banks for exchange market intervention. See reserve currency. Nonsterilized interventionNonsterilized interventionTaking an action in the foreign exchange market without adjusting for changes in money supply. Sterilized interventionSterilized interventionForeign exchange market activity by which monetary authorities insulate their domestic money supplies from the foreign exchange transactions with offsetting sales or purchases of domestic assets. Central bank interventionCentral bank interventionSee exchange market intervention. Further SuggestionsEnvironmental protection argument for a trade interventionCentral bank intervention Intervention |
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