Free floating refers TO THE exchange rate which is completely determined by market supply AND demand, which is different from the managed floating exchange rate which is controlled by the recipient.
Floating exchange rate means that under the paper currency system, the external value of a country’s currency is allowed to rise and fall freely according to the supply and demand situation, and the fluctuation range of the exchange rate is not fixed.
The current international exchange rate system is the floating exchange rate system.
As far as the floating form is concerned, if the government does not intervene in exchange rate fluctuations and completely allows supply and demand to determine the exchange rate, it is called free floating or clean floating.
Japanese authorities intervene in the currency market, sterling to watch out for British Prime Minister’s policy confusion.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
