Managed float
Definition. A managed float is an exchange rate system in which a currency value is largely determined by market forces of demand and supply, but the central bank intervenes from time to time to influence the rate. Singapore operates a managed float centred on the trade-weighted exchange rate.
Under Singapore managed float, the Monetary Authority of Singapore guides the Singapore dollar within an undisclosed policy band against a basket of currencies, allowing flexibility while smoothing excessive volatility and steering the currency in line with policy.
This term belongs to Exchange Rate Policy in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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