Banking News

Meaning of Dirty Float

The Central Bank (RBI in India) sometimes intervenes in the volatile foreign exchange market in order to manage excessive volatility and to influence the value of a floating currency in an orderly condition. Such intervention of Central bank is called “Dirty Float”. The recent communication of the regulator informs that the bank would intervene in the Exchange Traded Currency Derivatives (ETCD) segment as a further measure if required.  The communication further informs that the data for the ETCD intervention will be published in the RBI monthly Bulletin as in the case of Over-the-Counter (OTC) intervention.

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