Practicing Success
Suppose there are two countries - country P and country Q. Country P manipulated its exchange rate against the interest of country Q. This will be called as? |
Managed floating Fixed exchange rate Wide band Dirty floating exchange rate |
Dirty floating exchange rate |
Usually managed floating and dirty floating are used synonymously. This will fall under the situation of dirty floating exchange rate. Managed floating is when central bank tries to stabilize the exchange rate and eliminates fluctuations. That is a clean action. But manipulating against interest of another country and not following the rules and regulations would be dirty floating. |