A dirty float (also referred to as a 'managed float') is an exchange rate system in which a country's currency value is primarily determined by market forces, such as supply and demand, but with occasional intervention by the central bank. This intervention can take the form of buying or selling the country's own currency to stabilize or alter its value. The goal is often to prevent excessive short-term fluctuations and to maintain a more stable economic environment.
A dirty float, also known as a managed float, is a system of exchange rate management where a currency's value is primarily determined by market forces but is subject to occasional intervention by a country's central bank in order to stabilize or steer the currency's value.
A floating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate due to market forces without direct governmental control. However, governments and central banks may intervene to stabilize the currency if necessary.
A managed currency is a type of currency whose international value and exchangeability are heavily regulated by its issuing country. It often involves strategic interventions by the country's central bank to stabilize or control the currency's value in the international market.
