Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,896,989,328 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Floating Exchange Rate
(redirected from Fluctuating Exchange Rate)

    Also found in: Wikipedia 0.01 sec.
Floating exchange rate
A country's decision to allow its currency value to change freely. The currency is not constrained by central bank intervention and does not have to maintain its relationship with another currency in a narrow band. The currency value is determined by trading in the foreign exchange market.
Floating Exchange Rate
The exchange rate in which the value of the currency is determined by the free market. That is, a currency has a floating exchange rate when its value changes constantly depending on the supply and demand for that currency, as well as the amount of the currency held in foreign reserves. An advantage to a floating exchange rate is that it tends to be more economically efficient. However, floating exchange rates tend to be more volatile depending on the particular currency. A currency with a floating exchange rate may undergo currency appreciation or currency depreciation, depending on market fluctuations. A floating exchange rate is also called a flexible exchange rate. See also: Fixed exchange rate, Crawling peg, Managed float.
floating exchange rate
An exchange rate between two currencies that is allowed to fluctuate with the market forces of supply and demand. Floating exchange rates tend to result in uncertainty as to the future rate at which currencies will exchange. This uncertainty is responsible for the increased popularity of forward, futures, and option contracts on foreign currencies. Also called flexible exchange rate. Compare fixed exchange rate.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
60% of the Turkish CEOs surveyed said they saw fluctuating exchange rates as the major threat, while 47% of those showed excessive number of procedures, and 40% showed protectionism as the major threat.
TURKISH CEOs HOPEFUL ABOUT GROWTH -Vast Majority of Turkish CEOs ... by Anadolu (Eskisehir, Turkey)
Almost a quarter -23 per cent - of FSB members surveyed currently export products and services but are put off by red tape and bureaucracy - 32 per cent - fluctuating exchange rates, worries they might not get paid and difficulty in finding customers.
EXPORTERS PUT OFF BY RED TAP T E by Coventry Evening Telegraph (England)
Almost a quarter (23 per cent) of FSB members surveyed currently export products and services but are put off by red tape and bureaucracy (32 per cent), fluctuating exchange rates (48 per cent), worries they might not get paid (25 per cent) and difficulty in finding customers (23 per cent).
IN BRIEF..... by The Birmingham Post (England)
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.