The clean floating exchange rate is determined at a point where the demand for foreign exchange and the supply of foreign exchange are equal. Let's break down this concept further:

1. Demand for foreign exchange:
The demand for foreign exchange refers to the desire of individuals, firms, or governments to acquire foreign currency for various purposes such as importing goods and services, investing in foreign assets, or repatriating profits from overseas operations. The demand for foreign exchange is influenced by factors such as the level of economic activity, interest rates, inflation, and market expectations.

2. Supply of foreign exchange:
The supply of foreign exchange refers to the availability of foreign currency in the market. It is determined by factors such as exports of goods and services, foreign investment inflows, remittances from abroad, and foreign tourists' spending. The supply of foreign exchange is affected by factors such as the country's trade balance, capital flows, and government policies.

3. Equilibrium point:
In a clean floating exchange rate system, the exchange rate is determined by market forces of demand and supply. The exchange rate adjusts until the demand for foreign exchange equals the supply of foreign exchange. At this equilibrium point, buyers and sellers are willing to transact at the prevailing exchange rate.

4. Implications of a clean floating exchange rate:
- Flexibility: A clean floating exchange rate allows the exchange rate to adjust freely based on market conditions. It enables the currency to find its true value without intervention from the central bank or government.
- Market efficiency: The market forces of demand and supply ensure that the exchange rate reflects the underlying economic fundamentals. This encourages efficient allocation of resources and promotes international trade.
- Exchange rate volatility: As the exchange rate is determined by market forces, it can be subject to fluctuations in response to changing economic conditions, market sentiment, and other factors. This volatility can pose challenges for businesses engaged in international trade and investment.

In summary, the clean floating exchange rate is determined at a point where the demand for foreign exchange and the supply of foreign exchange are equal. This market equilibrium is achieved through the interplay of various economic factors and allows the exchange rate to adjust freely based on market conditions.