An exchange rate regime where the country's central bank allows its currency price to float freely between an upper and lower bound and may buy or sell large amounts of it in order to provide price support or resistance is referred to as ____________.

Question

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A managed floating regime, also known as a “dirty float,” allows a country's central bank to intervene in the foreign exchange market to influence the value of its currency. The central bank may set upper and lower bounds for the currency’s value or may simply engage in foreign exchange market operations to influence the currency's level. The goal of managed floating is to maintain some control over the currency's value while also allowing market forces to play a role in determining the currency's price.

An Exchange Rate Regime Where the Country's Central Bank Allows