Managed float

(redirected from Managed Floating Exchange Rate)

Managed float

Also known as "dirty" float, this is a system of floating exchange rates with central bank intervention to reduce currency fluctuations.

Managed Float

A floating exchange rate in which a government intervenes at some frequency to change the direction of the float by buying or selling currencies. Often, the local government makes this intervention, but this is not always the case. For example, in 1994, the American government bought large quantities of Mexican pesos to stop the rapid loss of the peso's value.

Strictly speaking, even a central bank's intervention to raise or lower interest rates could be considered a managed float. However, because most floating currencies manage their regimes with occasional central bank involvement, the term applies mainly to frequent or dramatic interventions. A managed float is also known as a dirty float. See also: 1994 Mexican economic crisis, Floating currency, Fixed exchange rate.
References in periodicals archive ?
China is to improve a managed floating exchange rate regime, bringing into
In July 2005, China abandoned the yuan's peg to the dollar and moved to a managed floating exchange rate regime, causing the yuan to appreciate somewhat against the dollar since.
On 28 December 1993, the PRC government announced the introduction of a unified managed floating exchange rate system, effective on 1 January 1994, reflecting its commitment to economic reforms.
We think that this suggestion is worth studying, but we have not decided to change the existing managed floating exchange rate regime," Dai told a news conference.
China is implementing the managed floating exchange rate regime based on market demand and supply.
It was at the 3rd Plenary Session of 14th CPC Central Committee that the goal of establishing a managed floating exchange rate regime based on market supply and demand was outlined.
China in July 2005 freed the yuan from an 11-year-old peg to the dollar and moved to a tightly managed floating exchange rate.
It marks the yuan's strongest level since China freed its currency from an 11-year-old peg in July 2005 and moved to a tightly managed floating exchange rate.
1994-96: a single and managed floating exchange rate regime based on market supply and demand.
In July, China abandoned its eight-year peg to the dollar and move to a managed floating exchange rate regime, leading the yuan to ''appreciate, though slightly, against the dollar since then,'' the department said.
That fixed peg, which had been in place since 1996, was cancelled abruptly in late July, though the new system adopted by Chinese leaders is far from free-floating But the announcement by the People's Bank of China was accompanied by a slight increase in the yuan's value and a pledge to "move into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies.
According to China, there will be a move towards a managed floating exchange rate regime based on a basket of currencies.

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