An example of a sterilized foreign exchange market intervention is a purchase of foreign exchange reserves that is exactly matched by an open market purchase.

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A sterilized foreign exchange market intervention involves a central bank buying or selling foreign currency in exchange for their own domestic currency and simultaneously conducting an offsetting operation, typically an open market sale or purchase of government securities, to neutralize the impact on the domestic money supply. The example given mixes the concepts; it should be a purchase of foreign exchange reserves matched by an open market sale (not purchase) of domestic securities to sterilize the intervention.

An Example of a Sterilized Foreign Exchange Market Intervention Is