What is a managed float?

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A managed float is a hybrid of freely floating exchange rates with occasional intervention by central banks. This means that while the exchange rates are allowed to float freely, central banks can intervene in the market periodically to manage the volatility of the exchange rates. This is in contrast to a fixed exchange rate system with regularly scheduled devaluations, a freely floating exchange rate system, or a fixed exchange rate system managed by a specific entity like the European Community.

What Is a Managed Float