why managed floating rate is called dirty floating exchange rates ?
Managed floating is the tool employed by the central bank to restore the value of the country's currency within desired limits even when the exchange rate is determined by the forces of demand and supply
Due to the reason that government interferes in it and those prices which were to be settled by the demand and supply rule have been intervened by the central bank. Thus it is known as dirty floating rate.
Due to the reason that government interferes in it and those prices which were to be settled by the demand and supply rule have been intervened by the central bank. Thus it is known as dirty floating rate.