Managed float regime

Amanaged float regime,also known as adirty float,is a type ofexchange rate regimewhere 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 countryintervenes occasionallyto stabilize or steer the currency's value in a particular direction. This is in contrast to apure floatwhere 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 theforeign exchange marketto counteractshort-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 thetrade balance.In this aspect, almost all currencies aremanagedsincecentral banksorgovernmentsintervene to influence the value of their currencies. According to theInternational 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.^[1]

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).

United States for instance, claims to follow a floating exchange rate regime and does not typically engage in direct intervention to set exchange rates. However, its economic policies, the role of the U.S. Dollar as aglobal reserve currency,and the sheer size of the US economy give it a significant indirect influence on global exchange rates and financial markets.

For more detail on each countries' exchange rate regime it is recommended to readIMF's Annual Report on Exchange Arrangements and Exchange Restrictions.

Countries with managed floating currencies

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 thede jurearrangement is a managed float. The IMF reclassifies the countries frequently based on the actions of their central banks.^[2]

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, theJapanese 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".^[2]

Source:^[2]

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