what are the benefits of a floating exchange rate 
the benefits of a floating currency exchange rate are the lack of a need for large reserves the lack of need for another commodity the currency would be tied to the ability to manage inflation and the ability to pursue internal controls such as full employment the bottom linefloating exchange rates are primarily how most currencies are valued today this means the value of a currency is based on the supply and demand of it this contrasts with other methods such as the value of a currency based on the value of certain assets it holds historically gold or a country deciding to fix or peg its currency 