floating exchange rate
1
5.2
- noun
- /ˈfloʊtɪŋ ɪksˈtʃeɪndʒ reɪt/
- Specialized
:
tipo de cambio flotante
- A floating exchange rate allows the value of a currency to change based on market demand.
- floating exchange rate regime
- floating exchange rate system
- freely floating exchange rate
Monetarily, Egypt was to transition to a floating exchange rate and work to contain inflation.
- Monetarily, Egypt was to transition to a floating exchange rate and work to contain inflation.
- But typically there are two ways that a country with a floating exchange rate can have a currency crisis, and neither applies to the UK at present.
Examples
-
Mexico has a floating exchange rate.
Academic text (1999) -
For the here and now, most academics and politicians favor floating exchange rates.
Academic text (1999) -
In short, "we have our own currency and a floating exchange rate."
Blog text (16) -
Monetarily, Egypt was to transition to a floating exchange rate and work to contain inflation.
-
For many years, the discussions focused on the choice of exchange rate regime, especially the relative merits of fixed and floating exchange rates.
Academic text (2018) -
Whereas a floating exchange rate was once the best way to deal with shocks, now fixed rates seem wiser.
Academic text (1999) -
Contrary to popular belief, a floating exchange rate does not necessarily allow a capital-dependent emerging economy to run an independent monetary policy.
Academic text (1999) -
In Friedman's view, one of the great attractions of a floating exchange rate system is that it decentralizes policymaking to the national level, allowing each country's policymakers to take responsibility for managing their own economy.
Academic text (2018) -
Countries with a floating exchange rate often experience fluctuations in their currency value.
-
Under a floating exchange rate system, the central bank does not set the currency's value.
Synonyms
The price of one currency that goes up and down with market buying and selling
Antonyms
- Specialized
1
5.4
A system where a government keeps a country's money at a set value, often linked to another currency or gold
How Flexible
- Specialized
1
5.2
- Specialized
- Specialized
1
5.4
Surface Forms
Morphology
The phrase is compositionally built: 'exchange rate' (the price of one currency in terms of another) modified by 'floating' (not fixed, allowed to move). A B1 learner who knows 'float/float(ing)', 'exchange', and 'rate' can readily infer that it means an exchange rate that moves according to the market rather than being fixed; this logic is common across languages.
Etymology
Floating exchange rate uses the image of a boat that is floating on the water instead of being tied to the shore, and the exchange rate is the price of a country's money. So, it means that price is 'free to move' and is decided by buyers and sellers, not fixed by the government.