The EzyEducation website uses cookies to help ensure we give you the best experience.
If you continue without changing your settings, we assume that you are happy to receive all cookies on the EzyEducation website.
Please refer to our Privacy and Cookies Statement to

find out more.

Continue

Floating Exchange Rate

This is a type of exchange rate in which the price of one currency in terms of another currency is determined solely by market forces and is not influenced by direct intervention by central banks.

Below is an example of a market in which the exchange rate has been determined at a value that makes the demand and supply for pounds equate each other.

Forgot your password?