A regime of floating exchange rates in which central banks intervene to control currency fluctuations, so that the exchange rate is neither entirely determined by the market forces of demand and supply nor purely officially fixed. A country applies such a strategy to let its currency devalue typically after a dramatic increase in demand for foreign currency which naturally drives a surge in black-market rates.

The managed (or “dirty”) float is generally typified by large nominal fluctuations and interventions by the monetary authorities.