What are the Disadvantages of a Floating Exchange Rate?

-Floating Exchange Rate can Fluctuate Widely, making Business Planning Hard -Speculation can Artificially Strengthen an Exchange Rate, making the Nation lose competitiveness. Can also be the other way around (Weaken the Exchange Rate and make Imports Expensive) -Falls in Exchange Rates lead to Inflationary Pressures, for example, if Demand for Imports are Price Inelastic