Managed Currency

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DEFINITION

Any currency that can have its exchange rate affected by the intervention of a central bank. This is opposed to a currency that is determined solely by the forces of supply and demand in the world market. Virtually no currencies truly fall into this latter category.

INVESTOPEDIA EXPLAINS

The majority of major world currencies are managed at least to some degree. This is due to the purchase and sale of these currencies by the central banks of different countries.They do this in order to stabilize the markets and affect their own monetary policies.


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