Floating exchange rate
A regime in which the rate is set by supply and demand in the market.
How to read the number
The rate works as a shock absorber: an external blow is taken by the currency's movement rather than by spending reserves.
When the metric lies
Floating does not mean untouched. The policy rate, mandatory sales of export earnings and budget operations move the rate no less than outright intervention does.
Also known as: market-determined exchange rate