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 ?
Summary: <p>China will find it hard to object to US President Barack Obama's drive for a more balanced global economy at a G20 summit this week but will resist any sweeping reforms that threaten to limit its headlong growth.AaUS calls for exporting nations to consume more will shift the spotlight back toward China's managed currency and its whopping trade surplus after.
Merk is offering investors an opportunity to add managed currency exposure to their portfolios" said Axel Merk, the President and CIO of Merk Investments.
"We want an end to a managed currency in China that hurts us," European Union trade commissioner Peter Mandelson said, highlighting some issues top US and EU officials will discuss today during the first meeting of the new Transatlantic Economic Council.
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. The answer has to be that it is at best improbable, and more realistically unimaginable.
This neo-mercantilist economic philosophy of managed currency and fine tuning of the economy did not, however, work in practice.
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.
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.
Dubai: The International Monetary Fund (IMF) said yesterday that a managed currency float in the Gulf could allow greater monetary independence to control inflation and facilitate real exchange rate adjustment to real shocks while, at the same time, suggesting a more flexible exchange rate regime "as a longer-term possibility".
This is the doctrine of managed currency which has guided the British monetary thinking since the reform of September 1931.
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.
The title of the law, The Gold Standard (Amendment) Act of 1931, misrepresents the change which took place, specifically the introduction of a Managed Currency. system as recommended by Lord Keynes in his works.