Floating exchange rate
A country's decision to allow its currency value to change freely. 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.
Nearby TermsFloater Floating debt Floating exchange rate Floating exchange rate system Floating lien
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University