Dirty Float
a.k.a. Managed float
An exchange rate that mostly floats, but with the central bank stepping in now and then to steer it.
In plain English
An exchange rate that mostly floats, but with the central bank stepping in now and then to steer it.
In a dirty float, the market sets the rate most of the time, but the central bank intervenes when it thinks the currency is moving too far or too fast.
Many emerging-market currencies work this way. It sits between a fully floating rate and a hard peg.
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