What is Clean Float or Free Float?


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Clean Float or Free Float: It is a model under which there is no official participation in
establishing currency values. The central bank does not set any target range or price and
the value of a currency is determined by market forces of demand and supply. The Central
Bank or the Government does not participate in the establishment of the exchange rate.
The disadvantage of this system was that currencies of weaker economies became
vulnerable to speculative attacks but most major economies floated their currencies.


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MT UVA BMS

MT UVA- University, Vocational and Affiliated Education for BMS

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