ease the threat of currency appreciation or inflation, banks often attempt what is known as the of capital flows. In a successful operation, the domestic component of the base (bank reserves plus currency) is reduced offset the reserve inflow, at least temporarily. In this can be achieved in several ways, such as by private investment overseas, or allowing to borrow from the local market. The form of sterilization, however, has been the use of open market operations, that is, Treasury bills and other instruments to reduce domestic component of the monetary base.