What is FLOATING EXCHANGE RATE?

A system when a currency value changes by market demand and supply. The government has no control over this. Central banks do try to defend the rates in a range by buying currency as a situation needs.

More On This Topic



Link to This Definition
Did you find this definition of FLOATING EXCHANGE RATE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary