When traditional policy interest rates reach the zero lower bound, central banks with export-dependent economies may deploy unconventional currency interventions to combat deflationary risks.
The FX Easing Process
[Policy Interest Rate at Zero] 
           |
           v
[Print Domestic Reserve Deposits] --------> Floods interbank settlement accounts
           |
           v
[Purchase Global Foreign Currency Assets] -> Drives domestic asset expansion
           |
           v
[Currency Depreciates Softly] -----------> Boosts import prices & support export fields

By printing domestic reserves to buy foreign assets, the central bank works to weaken the local currency, import soft inflation pressures through more expensive goods, and boost export demand to restart economic activity.
 
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