The government of Darnia 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 Darnia is doing is called a _____ float.

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A dirty float refers to a situation where a currency's exchange rate is allowed to float freely, but the government or central bank may intervene in the market to influence the exchange rate. In this case, Darnia's government has the right to intervene if they believe the currency has deviated too far from its fair value.

The Government of Darnia Allows Its Currency to Nominally Float