Managed (dirty) Float

An exchange rate system in which a nation allows the international value of its currency to be primarily determined by market forces but intervenes from time to time to stabilize its currency. In most instances, the intervention aspect of a managed float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy.

As the world economy is becoming increasingly integrated exchange rates impact all countries' economies through trade. As such, almost all currencies are managed, where central banks intervene to influence the value of their currencies. Among such countries are India, Singapore, Peru, Romania, and Egypt to name a few.