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.
Regrettably, managed currency systems are unlikely to be the optimum mechanism from the point of view of promoting freer trade, because they imply a high degree of discretionary governmental intervention in the currency markets to manage the currency and the balance of payments, and this can easily spill over into industrial policies to manage imports or exports.
a subsidiary of EverBank, announced today the launch of its two Managed Currency Portfolio solutions.
The EverBank Wealth Management Managed Currency Portfolio with Metals provides asset diversification using an array of global currencies and precious metals to hedge against fluctuations of the U.
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.
Foley also managed currency and fixed-income research teams, and was responsible for Pareto's $30 billion currency overlay product.
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.
lawmakers blame China's misalignment of its managed currency for the imbalance, contending that an artificially weak yuan gives Chinese exporters a huge unfair trade advantage.
A carefully managed currency effect that had a much smaller impact than on sales.
The firm says that a well managed currency futures program in an investment portfolio may both enhance capital appreciation and decrease risk.
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