Floating Exchange Rate

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Floating Exchange Rate
The decision of the government to let domestic currency value to float free. The central bank does not intervene to influence currency rates. This currency is not compared with respect to others. Its value is allowed to change and trading in the forex markets establishes its value.

Recommended for you:

  1. Fixed-Exchange Rate
  2. Exchange Rate Mechanism (ERM)
  3. Floating-Rate Payer
  4. Exchange Rate Risk
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