Meaning of “floating exchange rate” in the English Dictionary

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"floating exchange rate" in Business English

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floating exchange ratenoun [ C ]

uk us also floating rate ECONOMICS

an exchange rate that is allowed to change in relation to the value of other currencies:

Under the floating exchange rate system, a country's currency is supposed to adjust to ensure that its economy stays healthy.

(Definition of “floating exchange rate” from the Cambridge Business English Dictionary © Cambridge University Press)