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floating exchange rate

Cultural  
  1. An exchange rate that is determined by market conditions rather than being officially set. (Compare fixed exchange rate.)


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

As it turned out, the end of Bretton Woods resolved the balance-of-payments problem since under a floating exchange rate system the balance always nets to zero.

From The Wall Street Journal • May 8, 2026

While, in response to past allegations of unfairly controlling its currency's value, it's said it's committed to implementing a floating exchange rate regime, based on market supply and demand, but managed where necessary.

From BBC • Feb. 24, 2026

By mid-session, it was trading at 1,485 to the dollar -- just three cents shy of the outer limit of the floating exchange rate band announced by the government.

From Barron's • Oct. 17, 2025

Last December, the government secured a second IMF deal on the promise of implementing economic reforms, including a floating exchange rate.

From Washington Times • Dec. 18, 2023

The three pillars of the   economic program are a floating exchange rate, an   inflation-targeting regime, and tight fiscal policy, all reinforced   by a series of IMF programs.

From The 2005 CIA World Factbook by United States. Central Intelligence Agency