View source for Managed float regime

{{Short description|Term from the banking sector}}
{{Refimprove|date=December 2009}}
{{Foreign Exchange}}
A '''managed float regime''', also known as a '''dirty float''', is a type of [[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 [[Open market operation|intervenes occasionally]] to stabilize or steer the currency's value in a particular direction. This is in contrast to a [[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 [[foreign exchange market]] to counteract [[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 [[central bank]]s or [[governments]] intervene to influence the value of their currencies. According to the [[International Monetary Fund]], as of 2013, 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).

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

==Countries with managed floating currencies==

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

The below is a list of countries where, in 2022, the IMF has classified the regime as "Other managed arrangement" or "Stablized arrangement", or where the IMF states that the ''de jure'' arrangement is a managed float. The IMF reclassifies the countries frequently based on the actions of their central banks.<ref name=AREAER />

In its annual report, the IMF also notes instances where central banks have intervened, even for countries where it still classifies the currency as free floating. For instance, the [[Ministry of Finance (Japan)|Japanese Ministry of Finance]], it notes, has "intervened in the foreign exchange market in September 22, October 21, and October 24, 2022, to address excess volatility and disorderly exchange rate movement for the first time since 2011".<ref name=AREAER />

:''Source:''<ref name=AREAER>[https://www.elibrary-areaer.imf.org/Pages/ChapterQuery.aspx IMF AREAER] as of 2022</ref>

{| class="wikitable"
|-
! Country !! Stabilized arrangement !! Other managed arrangement !! [[De jure]] managed float
|-
| {{flag|Afghanistan}} || || || ''de jure'' managed 
|-
| {{flag|Algeria}} || || || ''de jure'' managed 
|-
| {{flag|Angola}} || || Other managed || 
|-
| {{flag|Armenia}} || Stabilized || || 
|-
| {{flag|Azerbaijan}} || Stabilized || || 
|-
| {{flag|Bangladesh}} || || Other managed || 
|-
| {{flag|Bolivia}} || Stabilized || || 
|-
| {{flag|Burundi}} || || || ''de jure'' managed 
|-
| {{flag|Cambodia}} || || || ''de jure'' managed 
|-
| {{flag|China}} || || Other managed || ''de jure'' managed 
|-
| {{flag|Costa Rica}} || || || ''de jure'' managed 
|-
| {{flag|Dominican Republic}} || || Other managed || ''de jure'' managed 
|-
| {{flag|Ethiopia}} || || || ''de jure'' managed 
|-
| {{flag|Ghana}} || || Other managed || 
|-
| {{flag|Guatemala}} || Stabilized || || 
|-
| {{flag|Guinea}} || Stabilized || || ''de jure'' managed 
|-
| {{flag|Guyana}} || Stabilized || || 
|-
| {{flag|Haiti}} || || Other managed || 
|-
| {{flag|Honduras}} || Stabilized || || 
|-
| {{flag|Iran}} || || Other managed || ''de jure'' managed 
|-
| {{flag|Kuwait}} || || Other managed || 
|-
| {{flag|Laos}} || || Other managed || ''de jure'' managed 
|-
| {{flag|Lebanon}} || Stabilized || || 
|-
| {{flag|Liberia}} || || || ''de jure'' managed 
|-
| {{flag|Malawi}} || Stabilized || || 
|-
| {{flag|Maldives}} || Stabilized || || 
|-
| {{flag|Mozambique}} || Stabilized || || 
|-
| {{flag|Myanmar}} || Stabilized || || ''de jure'' managed 
|-
| {{flag|Pakistan}} || || Other managed || 
|-
| {{flag|Papua New Guinea}} || Stabilized || || 
|-
| {{flag|North Macedonia}} || Stabilized || || 
|-
| {{flag|Romania}} || Stabilized || || ''de jure'' managed 
|-
| {{flag|Serbia}} || Stabilized || || ''de jure'' managed 
|-
| {{flag|Sierra Leone}} || || Other managed || 
|-
| {{flag|Singapore}} || || || ''de jure'' managed 
|-
| {{flag|Solomon Islands}} || || Other managed || 
|-
| {{flag|South Sudan}} || || Other managed || 
|-
| {{flag|Sudan}} || Stabilized || || 
|-
| {{flag|Syria}} || || Other managed || 
|-
| {{flag|Tajikistan}} || Stabilized || || ''de jure'' managed 
|-
| {{flag|Tanzania}} || Stabilized || || 
|-
| {{flag|Tonga}} || || Other managed || ''de jure'' managed 
|-
| {{flag|Trinidad and Tobago}} || Stabilized || || 
|-
| {{flag|Ukraine}} || Stabilized || || 
|-
| {{flag|Vanuatu}} || || Other managed || 
|-
| {{flag|Venezuela}} || || Other managed || 
|-
| {{flag|Vietnam}} || Stabilized || || ''de jure'' managed 
|-
| {{flag|Zimbabwe}} || || Other managed || 
|}

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

==References==
<references/>

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