A foreign exchange intervention taken by the European Central Bank to depreciate the euro might include which of these actions to sterilize the transaction, if that is wanted?

Question

Quizplus · Accepted Answer

To depreciate the euro, the ECB would sell euros and buy US dollars. To sterilize this intervention, they would sell a similar amount of government securities to offset the increase in the money supply caused by the initial transaction.

A Foreign Exchange Intervention Taken by the European Central Bank