Is hedging possible in the managed floating system?

Open in App

Solution

A managed float conversion rate (otherwise called a dirty float) is a swapping scale system in which the conversion standard is neither altogether free (or floating) nor fixed. Therefore, hedging is not possible in a managed floating system.

Also see: Managed Floating Exchange Rate System

Suggest Corrections

Similar questions

Would the central bank need to intervene in a managed floating system? Explain why.

Would the central bank need to intervene in a managed floating system? Explain.

Join BYJU'S Learning Program