Floating exchange rate (浮动汇率 fúdòng huìlǜ) refers to a country’s exchange rate regime in which the value of the currency is determined by its supply and demand on the foreign exchange market.
- 浮 (fú) as in buoyancy (浮力 fúlì), emersion (浮出 fúchū) or floating clouds (浮云 fúyún). The character contains 氵(shuǐ; water) and describes the situation when a certain item floats on the water.
- 动 (dòng) as in sports (运动 yùndòng), animals (动物 dòngwù) or moving/touching (动人 dòngrén).
- 汇 (huì) as in (汇款 huìkuǎn), (汇钱 huìqián) or converge (汇合 huìhé).
- 率 (lǜ) as in ratio (比率 bǐlǜ), heart rate (心率 xīnlǜ), probability (几率 jīǜ), or efficiency (功率 gōnglǜ).
- Floating (or flexible) exchange rates regime (浮动汇率制 fúdòng huìlǜ zhì).