Yes, under flexible exchange rate system, the Central Bank does not intervene in the forex market.
(i) Under Flexible exchange rate system, exchange rate is determined by the market forces i.e., demand and supply of foreign currency.
(ii) Increase in demand and decrease in supply of foreign exchange lead to rise in foreign exchange rate.
(iii) Decrease in Demand and Increase in supply of foreign exchange lead to fall in foreign exchange rate.
(iv) Demand of forex depends upon factors like imports, direct purchases abroad, Investment in rest of world, repayment of international loans etc.
(v) Supply of forex depends upon factors like exports, direct purchases by rest of the world, loans from rest of the world etc.