Managed Currency


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Managed Currency

A currency with an exchange rate set or influenced by a government. 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 creates a managed currency. However, because most floating currencies manage their regimes with occasional central bank involvement, the term applies mainly to frequent or dramatic interventions. See also: 1994 Mexican economic crisis, Floating currency, Fixed exchange rate.
References in periodicals archive ?
AaUS calls for exporting nations to consume more will shift the spotlight back toward China's managed currency and its whopping trade surplus after a year in which these were put to one side to look for ways out of the financial crisis.
So the question here is really whether the US dollar could break free from the United States state, and operate as a globally regulated, consensually managed currency.
Keynes also indicated that he remained a proponent of a managed currency but then stated that "the recent gyrations of the dollar have looked to me more like a gold standard on the booze than the ideal managed currency of my dreams.
This is the doctrine of managed currency which has guided the British monetary thinking since the reform of September 1931.
Two of them were launched in 1989 (the Managed Currency and International Bond funds) and a further two were established in 1990, the Saudi Riyal Fund and a US Money Market Fund (with investments in short term dollar deposits, FRNs, Cds and other short term fixed income securities).
However, turning to other countries in Asia, most of the smaller Asian countries have in recent years moved away from rigidly pegged exchange rates towards some kind of managed currency system.
Its focus is on the alternative investment sector, with particular specialism in non correlated asset classes such as Life Settlements and Managed Currency Trading.
Without naming China, he noted that some emerging countries ran tightly managed currency regimes that fuelled inflation risks in their own economies, magnified appreciation pressures in others and also generated calls for protectionism.
It must be clear by now, not only for every Briton but also for any free citizen of the world, that the British experiment since 1931 with managed currency and the indirect manipulation of the national economy by the government did not solve any of the basic problems of our times.
There are various costs involved for the managed currency mortgage customer
China, brimming with confidence as the worldi[macron]s fastest-growing economy, may extend a cooperative hand but analysts were doubtful that it would be willing to let go of its managed currency and whopping trade surplus easily.
Foley also managed currency and fixed-income research teams, and was responsible for Pareto's $30 billion currency overlay product.
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