flexible exchange rate

Floating Exchange Rate

The exchange rate in which the value of the currency is determined by the free market. That is, a currency has a floating exchange rate when its value changes constantly depending on the supply and demand for that currency, as well as the amount of the currency held in foreign reserves. An advantage to a floating exchange rate is that it tends to be more economically efficient. However, floating exchange rates tend to be more volatile depending on the particular currency. A currency with a floating exchange rate may undergo currency appreciation or currency depreciation, depending on market fluctuations. A floating exchange rate is also called a flexible exchange rate. See also: Fixed exchange rate, Crawling peg, Managed float.

flexible exchange rate

flexible exchange rate

see FLOATING EXCHANGE RATE.
References in periodicals archive ?
She said the current programme required a market determined and flexible exchange rate and strengthened central bank focused on exchange price stability.
Nonetheless, Brazils external position remains strong thanks to a large amount of reserves, a flexible exchange rate, and a contained current account deficit fully financed by large FDI inflows.
The International Monetary Fund (IMF) on Wednesday approved $6 billion bailout package for Pakistan after the country agreed to enforce flexible exchange rate, enhance taxes and end circular debt -the weaknesses that have remained unaddressed despite availing nearly two-dozen programmes.
Does devaluation lead to an increase in prices This is a critical question that policy-makers in Pakistan have faced continuously over the past three decades or so, and particularly since 1982, following the adoption of a flexible exchange rate policy.
Baqir's immediate responsibilities will be to roll out policies set out by the IMF including implementing a flexible exchange rate regime, reducing the government's reliance on central bank borrowings and ensuring transparency in many loans transactions.
More specifically, real output growth exceeded expectations, inflationary pressures that emerged after the transition to a flexible exchange rate regime began to abate, and investor confidence picked up.
ISLAMABAD -- The International Monetary Fund (IMF) has classified Pakistan's existing exchange rate as 'stabilized arrangement' and asked Islamabad to move towards adopting a market-based flexible exchange rate with a strong, transparent and accountable central bank as exists in other emerging markets of the world.
A flexible exchange rate acts as an automatic stabilizer in two ways.
As central bank seeks to adopt a flexible exchange rate policy from January 2019, the government finally acted on Friday to soothe unnerved markets and signalled that it would not bring further fluctuation in the exchange rate and monetary policy in the short term.
'With gross international reserves equivalent to about seven months of imports, a steady source of foreign exchange inflows led by remittances, business process outsourcing industry revenues and tourism receipts, a flexible exchange rate policy and overall prudent management of the country's external accounts, the economy shall remain resilient amid global volatilities,' he said.
Besides this, the government will also be working to boost the competitiveness of the Egyptian economy through adopting a flexible exchange rate system, the minister said.
WASHINGTON, May 17 (KUNA) -- International Monetary Fund's Chief Christine Lagarde welcomed South Korea's decision to publish data on foreign exchange intervention, no Thursday, as a "strong message about commitment." In a statement, Lagarde, Managing Director of the IMF, said of Seoul's major policy shift that would enhance transparency and ease concerns that it is involved in currency manipulation to boost exports: "It delivers a strong message about commitment to a flexible exchange rate regime.

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