Floating Exchange Rate
/ˈfloʊtɪŋ ɪksˈtʃeɪndʒ reɪt/
Definitions
- (n.) A currency valuation system where exchange rates are determined by market forces without fixed government intervention.
The country adopted a floating exchange rate to allow its currency to adjust freely to economic conditions.
Forms
- floating exchange rate
Related terms
See also
Commentary
In legal contexts, the term often arises in discussions of monetary sovereignty and regulatory frameworks governing currency markets.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.