When a government influences the exchange rate of its currency, it is said to be practicing "dirty floating."

Name: When a government influences the exchange rate of its currency, it is said to be practicing "dirty floating."
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Dirty floating refers to a situation where a government intervenes in the foreign exchange market to influence the value of its currency. This is opposed to a freely floating exchange rate, where the value of the currency is determined solely by market forces.

When a Government Influences the Exchange Rate of Its Currency