Managed Currency

  

Categories: Managed Funds

If a currency is “managed,” it means the country’s head honcho of finance...the central bank...has stepped in and laid down the law. Managed currencies mean that the price and exchange rate of that currency has been in some way purposefully tinkered with by the central bank.

There are a few ways currencies can be managed, like controlling the money supply, setting interest rates, banking regulations, reserve requirements, and acting as a safety net (think: bailouts) when things goes south. Most currencies are affected in some way, even if it’s small, by some intervention, making most currencies "managed currencies" in the pure sense of the term.

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