What is STERILIZATION?

The offset of foreign exchange market effects by increasing or decreasing the national money supply by a monetary authority such as a central bank. It is a manipulation of the value of domestic and foreign currency. Refer to dirty float.

More On This Topic



Link to This Definition
Did you find this definition of STERILIZATION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary