In a sterilized exchange rate arrangement, a country's home currency value is pegged to a foreign currency or to some unit of account.

Name: In a sterilized exchange rate arrangement, a country's home currency value is pegged to a foreign currency or to some unit of account.
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A sterilized exchange rate arrangement involves central bank interventions to offset the impact of foreign exchange operations on the domestic money supply, not necessarily pegging the currency.

In a Sterilized Exchange Rate Arrangement, a Country's Home Currency