View source for Finance:Managed float regime

{{Short description|Term from the banking sector}}
{{Foreign Exchange}}
A '''managed float regime''', also known as a '''dirty float''', is a type of [[Finance:Exchange rate regime|exchange rate regime]] where a currency's value is allowed to fluctuate in response to foreign-exchange market mechanisms (i.e., supply and demand), but the central bank or monetary authority of the country [[Finance:Open market operation|intervenes occasionally]] to stabilize or steer the currency's value in a particular direction. This is in contrast to a [[Finance:Floating exchange rate|pure float]] where the value is entirely determined by market forces, and a fixed exchange rate where the value is pegged to another currency or a basket of currencies.

Under a managed float regime, the central bank might buy or sell its own currency in the [[Finance:Foreign exchange market|foreign exchange market]] to counteract [[Finance:Hot money|short-term fluctuations]], to prevent excessive depreciation or appreciation, or to achieve certain economic goals such as controlling inflation or boosting exports.

In an increasingly integrated world economy, the currency rates impact any given country's economy through the trade balance. In this aspect, almost all currencies are ''managed'' since [[Finance:Central bank|central bank]]s or governments intervene to influence the value of their currencies. According to the [[Organization:International Monetary Fund|International Monetary Fund]], as of 2014, 82 countries and regions used a managed float, or 43% of all countries, constituting a plurality amongst exchange rate regime types.<ref name=Nikkei>{{cite news|title=IMF finds more countries adopting managed floating exchange rate system|url=http://asia.nikkei.com/Markets/Currencies/IMF-finds-more-countries-adopting-managed-floating-exchange-rate-system|accessdate=5 March 2015|work=Nikkei Asian Review|agency=Nikkei|date=August 19, 2014}}</ref>

International financial organizations, like the IMF, categorize countries' exchange rate regimes based on specific criteria, but these classifications aren't necessarily objective and may not fully capture the nuances of a country's exchange rate policies. For example, a country may normally have a floating exchange rate regime but intervene in times of extreme volatility, a country may formally claim to be following one exchange rate regime (de jure) while having another in practice (de facto).

United States for instance, claims to follow a floating exchange rate regime and does not typically engage in direct intervention to set exchange rates. However, its economic policies, the role of the U.S. Dollar as a [[Finance:Reserve currency|global reserve currency]], and the sheer size of the US economy give it a significant indirect influence on global exchange rates and financial markets.

For more detail on each countries' exchange rate regime it is recommended to read [https://www.elibrary-areaer.imf.org/Pages/Home.aspx IMF's Annual Report on Exchange Arrangements and Exchange Restrictions.] 

==List of countries with managed floating currencies==

[[File:Exchange rate arrangements map.png|thumb|Map of current exchange rate regimes (2018)
''De facto'' exchange-rate arrangements in 2018 as classified by the [[Organization:International Monetary Fund|International Monetary Fund]].
{{Legend|#66c2a5|[[Finance:Floating exchange rate|Floating]] (''floating'' and ''free floating'')}}
{{Legend|#8da0cb|Soft pegs (''conventional peg'', ''stabilized arrangement'', ''[[Finance:Crawling peg|crawling peg]]'', ''crawl-like arrangement'', ''[[Finance:Currency band|pegged exchange rate within horizontal bands]]'')}}
{{Legend|#fc8d62|Hard pegs (''no separate legal tender'', ''[[Finance:Currency board|currency board]]'')}}
{{Legend|#e78ac3|Residual (''other managed arrangement'')}}
]]

{{outdated|date=March 2015}}
:''Source [https://www.imf.org/external/np/mfd/er/2008/eng/0408.htm IMF] as of April 31, 2008''{{Dubious|reason=only 30 days in April|date=October 2011}}{{Outdated statistic}}

*{{flag|Afghanistan}}
*{{flag|Algeria}}
*{{flag|Argentina}}
*{{flag|Armenia}}
*{{flag|Burundi}}
*{{flag|Cambodia}}
*{{flag|Colombia}}
*{{flag|Dominican Republic}}
*{{flag|Egypt}}
*{{flag|Ethiopia}}
*{{flag|Gambia}}
*{{flag|Georgia}}
*{{flag|Ghana}}
*{{flag|Guatemala}}
*{{flag|Guinea}}
*{{flag|Haiti}}
*{{flag|Indonesia}}
*{{flag|Jamaica}}
*{{flag|Japan}}<ref>[[Finance:Japanese yen|Japanese yen]]</ref>{{Circular reference|date=February 2018}}
*{{flag|Kenya}}
*{{flag|Kyrgyzstan}}
*{{flag|Laos}}
*{{flag|Liberia}}
*{{flag|Madagascar}}
*{{flag|Malaysia}}
*{{flag|Mauritania}}
*{{flag|Mauritius}}
*{{flag|Moldova}}
*{{flag|Morocco}}
*{{flag|Mozambique}}
*{{flag|Myanmar}}
*{{flag|Nigeria}}
*{{flag|Pakistan}}
*{{flag|Papua New Guinea}}
*{{flag|Paraguay}}
*{{flag|Peru}}
*{{flag|Romania}}
*{{flag|São Tomé and Príncipe}}
*{{flag|Serbia}}
*{{flag|Singapore}}
*{{flag|Sudan}}
*{{flag|Taiwan}}
*{{flag|Tanzania}}
*{{flag|Thailand}}
*{{flag|Trinidad and Tobago}}<ref name="Floating of the TT dollar: 20 years later">{{cite news |url = http://www.trinidadexpress.com/commentaries/Floating-of-the--TT-dollar-20-years-later-201153211.html|title=Floating of the TT dollar: 20 years later|archiveurl=https://web.archive.org/web/20130405025531/https://trinidadexpress.com/commentaries/floating-of-the--tt-dollar-20-years-later-201153211.html|archivedate=April 5, 2013|newspaper=Trinidad Express Newspaper|date=April 2, 2013}}</ref>
*{{flag|Uganda}}
*{{flag|Ukraine}}
*{{flag|Uruguay}}
*{{flag|Vanuatu}}

==See also==
*December Mistake
*[[Finance:Black Wednesday|Black Wednesday]]
*Fixed exchange rate
*[[Finance:Floating exchange rate|Floating exchange rate]] or Floating currency

==References==
<references/>

{{DEFAULTSORT:Managed Float Regime}}
[[Category:International finance]]

{{Sourceattribution|Managed float regime}}