floating exchange rate system
Abbreviation of 変動為替相場制. Used in economic contexts to describe a system where currency values are determined by market forces rather than fixed by government policy.
See also: 変動為替相場制 (へんどうかわせそうばせい)
Japan shifted to a floating exchange rate system in 1973.
Under a floating exchange rate system, exchange rates are determined by market supply and demand.