*2.2.1 The free float rate of exchange regime*

The rate of exchange regime that is free floating depends on market forces in the determination of the exchange rate. Alade [12] opined that in a rate of exchange regime that is free float, "the monetary authority does not intervene in the foreign exchange market and that monetary policy is therefore independent of the exchange rate regime and can be used to steer the domestic economy". Okoli et al. [13] did observe that the "high level of exchange rate volatility in the world market, particularly the Naira/Dollar exchange rate especially in the recent past is not only alarming but economically threatening".
