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Glossary > F > "Floating exchange rate" Definition

Floating exchange rate

A countrys 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.

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Floating exchange rate - A countrys 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.

Floating exchange rate : a countrys 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.