floating exchange rate definition

floating exchange rate

System in which a currency's value is determined solely by the interplay of the market forces of demand and supply (which, in turn, is determined by the soundness of a country's basic economic position), instead of by government intervention. However, all central banks do try to defend these rates within a certain range by buying or selling their country's currency as the situation warrants.

floating exchange rate is in the Accounting & Auditing, Banking, Commerce & Finance and Currency Trading subjects.

floating exchange rate appears in the definitions of the following terms: depreciation, fixed exchange rate, managed currency, Bretton Woods system, clean float, gold standard and floating currency

This content can be found on the following page:

http://www.businessdictionary.com/definition/floating-exchange-rate.html