Anation allowed its currency to be valued based on supply and demand. this is known as a exchange rate

A nation allowed its currency to be valued based on supply and demand. This is known as a "floating" exchange rate.

A floating exchange rate alludes to changes in a money's esteem in respect to another currency (or currencies).  

Floating exchange rates imply that monetary standards change in relative esteem constantly.  

In a Floating exchange rate system, when the interest for a cash is low, its esteem diminishes similarly likewise with some other item or administration. Yet, the consequence of a degraded money is that foreign made merchandise appear to be increasingly costly to the general population holding that cash.