Joint float

Joint float

An arrangement by which a group of currencies maintain a fixed relationship relative to each other, but move jointly relative to another currency in response to supply and demand conditions in the exchange market.

Joint Float

An agreement between the central banks of two or more different countries where their currencies remain at the same exchange rate relative to each other, but are otherwise floating currencies. The two central banks make the relevant purchases and sales of each other's currencies in order to maintain the joint float. See also: Peg.
References in periodicals archive ?
The European Joint Float was established by West Germany, France, Italy, theNetherlands, Belgium and Luxemburg.
The collapse of the Smithsonian agreement and the European Joint Float in1973 signified the official switch to the free-floating system.
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