Managed float regime

Template:Short description Template:Refimprove Template: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 intervenes occasionally to stabilize or steer the currency's value in a particular direction. This is in contrast to a 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 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 banks 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.

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.

Countries with managed floating currencies

File:Exchange rate arrangements map.png

De facto exchange-rate arrangements in 2018 as classified by the International Monetary Fund

  Floating (floating and free floating)

  Soft pegs (conventional peg, stabilized arrangement, crawling peg, crawl-like arrangement, pegged exchange rate within horizontal bands)

  Hard pegs (no separate legal tender, currency board)

  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.

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 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".

Source:

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

See also

• December Mistake
• Black Wednesday
• Fixed exchange rate
• Floating exchange rate or floating currency