FLOATING EXCHANGE RATE


Meaning of FLOATING EXCHANGE RATE in English

A country's decision to allow its currency value to freely change. The currency is not constrained by central bank intervention and does not have to maintain its relationship with another currency in a narrow band. The currency value is determined by trading in the foreign exchange market.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.