dirty float

Dirty float

A system of floating exchange rates in which a government may intervene to change the direction of the value of the country's currency.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

dirty float

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

dirty float

the manipulation by the monetary authorities of a country's EXCHANGE RATE under a FLOATING EXCHANGE-RATE SYSTEM, primarily in order to gain a competitive advantage over trade partners. Thus, the authorities could intervene in the FOREIGN EXCHANGE MARKET to stop the exchange rate from otherwise appreciating (see APPRECIATION 1) in the face of market forces or, alternatively, they could deliberately engineer a DEPRECIATION of the exchange rate. See BEGGAR-MYNEIGHBOUR POLICY.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The governor's textbook reading of avoiding free as well as dirty float in favour of a market-determined exchange rate was hogwash.
This is known as a 'managed float' or 'dirty float' regime because the central bank intervenes to ensure that the floating exchange rates remain fairly close to some fixed rate determined by policymakers.
Therefore the Bank should, at the risk of a dirty float, announce supporting the rupee between, say, a 140-145 band to the dollar.
The current managed floating system is a dirty float which cannot stabilize foreign exchange rates.
The policy will be what economists call a 'dirty float'," Prat-Gay said.
This means that Tenge will not be in absolute free float mode; the ability of National Bank to intervene makes it conditional float, also called dirty float.
There were countries that tried to take the middle way of non-alignment but in much of their practice they fell on the one side or the other rather like in the dirty float of currencies in a claimed freely traded market.
We believe the level (corridor)-based intervention mechanism by design welcomes unnecessary speculative activity and ultimately the CBR is likely to abandon it and switch to a dirty float regime with interventions triggered mainly by the volatility and financial stability considerations.'
Multiple Exchange Rate and Dirty Float Regimes (July 1998-July 2000): This phase was marked with political instability in the country and economic sanctions by western countries as a result of the nuclear test by Pakistan.
During this period Pakistan passed through different exchange rate regimes including fixed exchange rate, managed floating exchange rate, multiple exchange rate, dirty float and flexible exchange rate.
"The Japanese determination to resist the rise of the yen is a leading example of what has been called the "dirty float", a floating exchange rate involving considerable official intervention in one direction," they wrote.
A managed float regime (or dirty float) is a complex bit of high finance jargon which describes a system of economic management where Ishaq Dar yells at enough people so that, economically, things look good.