A method of adjusting exchange rates in which a currency is allowed to fluctuate within a range of rates rather than floating freely. Because of economic factors such as inflation, the currency's par value may need to be adjusted from time to time. For example, China's onshore yuan has historically been crawlingly pegged to the US dollar; the Chinese central bank kept it in a fluctuation band of 2% either side of a rate that was reset daily in accordance with government objectives. The People's Bank of China announced its intention to switch to a managed float in August 2015.