The government of an Asian country allows its currency to nominally float freely against other currencies, but the government has the right to intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value. What this country is doing is called a ________ float.

Question

Quizplus · Accepted Answer

A "dirty float" or "managed float" is when a currency is allowed to float in the market but the government intervenes occasionally to stabilize or adjust its value.

The Government of an Asian Country Allows Its Currency to Nominally