Managed float regime
is the current international financial
environment in which exchange rates
fluctuate from day to day, but central banks
attempt to influence their countries'
exchange rates by buying
and selling currencies
. It is also known as a "dirty float".
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.