Fnu Lnu  [Post 1 of 2……] 

[Post 1 of 2……]    There are several regiments to float a currency: FREE FLOAT – The currency’s value is determined solely by supply and demand in the market…MANAGED FLOAT – Similar to a free floating…but a government intervenes by buying or selling its own currency to minimize fluctuations.  CURRENCY PEG – The currency’s value is pegged to a basket of currencies or to another country’s currency.  EUROPEAN SNAKE [In The Tunnel] – Beginning in mid-1972…Each country agreed not to allow its currency to fluctuate more than 1 1/8% up or down from an agreed central exchange rate.