Currency flotation

Currency flotation or a floating currency rate is a currency regime in which a country’s currency price is determined by demand and supply in an open market. This is in contrast to the fixed exchange rate used by most countries. Recently, the Sudanese government took the unprecedented step of floating its currency. This is a part of its efforts to stabilize the country’s economy. The step was also taken to meet a major demand by international financial institutions for normalization of ties.