What is Managed or Dirty Float?

Managed or Dirty Float: Most medium and small economies, therefore adopted the
system of PEGGING their currency either to one of the major international currencies or
SDR’s or a basket of currencies. The disadvantage of this mechanism was that the
exchange rate of a country did not reflect the economic fundamentals of the home country,
but its value depended upon the economic performance of the country to whose currency
the domestic currency was pegged.