The Chinese government is moving away from a fixed currency to a ____________.

Question

Quizplus · Accepted Answer

The phrase "managed floating system" describes a flexible exchange rate regime where the central bank may intervene in foreign exchange markets to influence the value of its currency, but also allows for market forces to play a role in determining the rate. This is what the Chinese government has moved towards, gradually allowing the yuan to become more market-based rather than fixing it to a specific value.

The Chinese Government Is Moving Away from a Fixed Currency