A "dirty float" is a system

Question

Quizplus · Accepted Answer

A "dirty float" is a system of managed exchange rates where a country's central bank may intervene in the foreign exchange market to influence the value of its currency. This intervention may take the form of buying or selling its own currency to increase or decrease its value relative to other currencies. This is in contrast to a free-floating exchange rate system where the value of a currency is determined solely by market forces without any interventions from the central bank.

A "Dirty Float" Is a System