What Is a Free Float?
Free floating is also known as "clean floating". "Management float" symmetry. A form of floating exchange rate. The monetary authorities did not intervene in fluctuations in exchange rates and left them to rise and fall freely as the supply and demand relationship in the foreign exchange market changed. However, because exchange rate changes have a great impact on the balance of payments and domestic economies of various countries, in order to protect their national interests, governments and monetary authorities of various countries have actually intervened in the market exchange rate, either directly or indirectly, or directly or indirectly. [1]
Free float
Right!
- Free floating is also known as "clean floating". "Management float" symmetry. A form of floating exchange rate. The monetary authorities did not intervene in fluctuations in exchange rates and left them to rise and fall freely as the supply and demand relationship in the foreign exchange market changed. However, because exchange rate changes have a great impact on the balance of payments and domestic economies of various countries, in order to protect their national interests, governments and monetary authorities of various countries have actually intervened in the market exchange rate, either directly or indirectly, or directly or indirectly. [1]
- Free floating, also known as "clean floating," means that the monetary authorities do not interfere in the foreign exchange market and let the exchange rate fluctuate freely as market supply and demand change.