Forex

Sterilized Intervention

Definition

Foreign exchange market intervention by a central bank that is accompanied by offsetting domestic monetary operations to neutralize the effect on the domestic money supply. This allows exchange rate management without altering interest rates or monetary conditions.

Example
Sterilized intervention allows a central bank to weaken its currency without triggering inflation or altering interest rates.
Related Terms
Central Bank Intervention Intervention (Forex) Quantitative Easing (QE) Sterilization
Frequently Asked Question
What is Sterilized Intervention?
Sterilized Intervention is a forex market action where a central bank buys or sells currency while simultaneously offsetting the domestic money supply impact. It influences exchange rates without changing monetary policy.
APA Citation
Clark, R. (2025). Sterilized Intervention. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/sterilized-intervention
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.