Managed float

Posted by Scriptaty | 7:45 PM

A managed-float currency falls somewhere between a fully floating currency and a fixed-rate currency. The government of a managed-float currency uses capital controls and other measures (including intervention) to keep the value of its currency within a fixed range of levels against other currencies; it changes the range over time according to its own wishes. Therefore, a managed-float currency can vary within the current government set range, and the government can change the range from time to time, but the foreign exchange market cannot push the currency outside the range. The foreign exchange market for a managed-float currency is heavily regulated.