managed float

A managed float is a type of currency exchange system where a country's currency value is primarily determined by market forces of supply and demand, but the government or central bank intervenes occasionally to stabilize or influence the currency's value. This intervention aims to prevent extreme fluctuations that could harm the economy. For example, if a currency begins to drop significantly, the central bank might step in to buy its own currency to strengthen it. This approach blends free-market principles with governmental oversight, allowing for some level of control while still enabling market dynamics to play a role.