In Pimpy

Question: “What’s the difference between a dirty float and a managed float?”  You have a fixed rate like we have now… where they come out and say you get 1320 dinar for a dollar, fixed.  Then you have two types of floats…Free Float – that means a market determines the value no ifs, ands, or buts.  The market determines the value.  That’s a free float.  A managed float is the same as a dirty float.  That means the Central Bank of Iraq will watch what happens in the free market, like Forex, but if it goes too far in one direction…then they intervene.  They’ll do something to control the exchange rate to keep it from getting out of whack.