Skip to content

Floating exchange rate

Floating exchange rate is an exchange rate regime when the value of a nation’s currency measured relative to other currencies is allowed to fluctuate in response to foreign exchange market events. A currency that uses a floating exchange rate is known as a floating currency.

Related Posts

Currency Appreciation

Currency appreciation is the increase in the value of a country's currency with respect to one or more foreign reference currencies, typically in a...

Currency Peg

Currency peg is a popular name for a fixed exchange rate - a type of FX regime in which a currency's value is fixed or pegged by a monetary authority...

Currency devaluation

Currency devaluation is the deliberate reduction in the value of a country's currency relative to a currency (or currencies) of the main trade...