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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

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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

On Sunday, Economy Minister Luis Caputo ruled out immediate plans to dollarize the economy or alter the floating exchange rate band, amid speculation of post-election changes.

From Barron's Oct. 14, 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

A floating exchange rate, an inflation-targeting regime, and a tight fiscal policy are the three pillars of the economic program.

From The 2008 CIA World Factbook by United States. Central Intelligence Agency

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