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Floating currencies for Asian Countries

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Should the governments of Asian countries allow their currencies to float freely? What would be the advantages of letting their currencies float freely? What would be the disadvantages?

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Solution Summary

The solution explains the disadvatages and advantages of floating currencies

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A freely floating currency implies that the exchange rate is set by market forces and the government does not influence the exchange rate.

If Asian countries allow the currencies to float freely, the following benefits would be there -

A freely floating currency stabilizes the funds between countries. If there are more funds going out than what is coming in, then the exchange rate would weaken and the currency would become ...

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