Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
What is Managed Floating ? Explain it briefly.
Managed floating! It's a foreign exchange regime that's gaining popularity. In simple terms, it's a middle ground between letting your currency float freely on the market and fixing it to a specific value. Think of it like a parent teaching a kid to ride a bike. At first, you hold the back ofRead more
Managed floating! It’s a foreign exchange regime that’s gaining popularity. In simple terms, it’s a middle ground between letting your currency float freely on the market and fixing it to a specific value.
Think of it like a parent teaching a kid to ride a bike. At first, you hold the back of the bike and guide them, but as they gain confidence, you gradually let go, allowing them to balance on their own. That’s similar to managed floating!
The government or central bank intervenes in the foreign exchange market to influence the currency’s value, but they don’t control it entirely. They might set a target range or adjust interest rates to stabilize the currency, but ultimately, market forces dictate its value.
This approach allows for flexibility and adaptability in response to changing economic conditions. It’s like being a coach, offering guidance and support when needed, but also giving the currency room to grow and adjust naturally. Make sense?
See less