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There are several regiments to float a currency: FREE FLOAT - The currency's value is determined solely by supply and demand in the market...MANAGED FLOAT - Similar to a free floating...but a government intervenes by buying or selling its own currency to minimize fluctuations.
CURRENCY PEG - The currency's value is pegged to a basket of currencies or to another country's currency. EUROPEAN SNAKE [In The Tunnel] - Beginning in mid-1972...Each country agreed not to allow its currency to fluctuate more than 1 1/8% up or down from an agreed central exchange rate.
I doubt they still call it "The Snake" but that is the method used to if one wishes to participate in the IMF baskets...
The Dinar will use the European Snake method of floating the currency because it only allows for a 1 1/8% fluctuation up or down thus providing the maximum stability. The currency will open with it's permanent value, more or less, and then over time, it may be allowed to adjust one and one-eighth percent either way...
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