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A floating exchange rate is:

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when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows.

involves the confirmation of the country authorities' de jure exchange rate arrangement.

where the exchange rate remains within a narrow margin of $2$ percent relative to a statistically identified trend for six months or more, and the exchange rate arrangement cannot be considered as floating.

where the exchange rate is largely market determined without an ascertainable or predictable path for the rate.