Free float exchange rate regime (自由浮动汇率制度 zìyóu fúdòng huìlǜ zhìdù) refers to the exchange rate regime which allows a currency’s value to be freely (自由地 zìyóude) determined by market forces based on the market demand ans supply of the currency. The exchange rate is not constrained by intervention from monetary authority.
- 汇 (huì) as in remit (汇款 huìkuǎn) or wire transfer (电汇 diànhuì).
- 率 (lǜ) as in ratio (比率 bǐlǜ) or frequency (频率 línlǜ).
- 制度 (zhìdù) refers to a system or regime.
- Free (自由 zìyóu) as in free trade (自由贸易 zìyóu màoyì).
- Exchange rate (汇率 huìlǜ) as in foreign exchange rate (外汇汇率 wàihuì huìlǜ).
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