In Managed Floating System, Can we say that value of currency is pegged to another currency as Government sets a - Economics - Open Economy Macroeconomics

Question

In Managed Floating System, Can we say that value of currency is
pegged to another currency as Government sets a range within which
the value of currency should fluctuate If the value goes beyond
that range then Governemnt would intervene
Isnt fixing a range for currency also a sort of 'Pegging'

Vaishali Nebhwani · Accepted Answer

Dear student,

Managed Floating System is a mix of fixed and flexible exchange
rate In this the exchange rates are determined by the market forces
of demand and supply with intervention of monetary authority as and
when required

Fixing a range of currency is pegging but managed floating system
is not entirely pegged, the government only intervenes in exchange
rates as and when required

Regards

In Managed Floating System, Can we say that value of currency is pegged to another currency as Government sets a range within which the value of currency should fluctuate If the value goes beyond that range then Governemnt would intervene Isnt fixing a range for currency also a sort of 'Pegging'

In Managed Floating System, Can we say that value of currency is pegged to another currency as Government sets a range within which the value of currency should fluctuate If the value goes beyond that range then Governemnt would intervene
Isnt fixing a range for currency also a sort of 'Pegging'