A dirty float occurs when a country uses pegged exchange rates to value its currency.

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A dirty float is a system of floating exchange rates where the government or central bank of a country intervenes in the foreign exchange market to influence the value of its currency, rather than using a pegged exchange rate. In a dirty float, the exchange rate is allowed to fluctuate within a certain range, but the government may still buy or sell its own currency to influence its value. In contrast, a pegged exchange rate system involves fixing the value of a country's currency to another currency or to a basket of currencies.

A Dirty Float Occurs When a Country Uses Pegged Exchange