Clean Float

Practically all Central Banks, such as those in the US, Europe, Japan, et al. have limits as to how widely their currency is allowed to float in the international Forex markets before intervening by dumping in order to halt an overheated steep rise, and buying to support a free fall.

On the rare occasions when a Central Bank allows the market to determine the Forex rate of its currency on the international market without any interference, it is termed to be a “clean float."