Managed Currency

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Related to managed currencies: Pegged Currencies

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 ?
Furthermore, the research demonstrates that currencies "have attractive characteristics in the portfolio-design context, and that there is potential value, both conceptually and empirically, in considering actively managed currencies as opposed to prevalent market indices," they state.
First, they argue, managed currencies should be considered an asset class "for the same reason that other popular alternative assets are.
So long as separate, independently managed currencies exist, i.
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