Managed float
Market basicsAlso called: Managed floating exchange rate
An exchange rate regime in which the rate is set by the market but the central bank operates in it — the Reserve Bank’s stated position being that it does not target a level and acts to contain excessive volatility.
In plain terms
For a chart reader the consequence matters more than the intent: a stretch of unusually small ranges is not by itself evidence that the next move will be small, so volatility measured over a quiet window understates what a stop has to survive.