A fixed exchange-rate system (also known as pegged exchange rate system) is a currency system in which governments try to maintain their currency value constant against one another. In a fixed exchange-rate system, a country’s government decides the worth of its currency in terms of either a fixed weight of gold, a fixed amount of another currency or a basket of other currencies. The central bank of a country remains committed at all times to buy and sell its currency at a fixed price. The central bank provides foreign currency needed to finance payments imbalances.
Other articles related to "system":
... Exchange rate regime Floating exchange rate Gold standard Bretton Woods system Nixon Shock Smithsonian Agreement Foreign exchange fixing ...
Famous quotes containing the words system and/or fixed:
“Short of a wholesale reform of college athleticsa complete breakdown of the whole system that is now focused on money and powerthe womens programs are just as doomed as the mens are to move further and further away from the academic mission of their colleges.... We have to decide if thats the kind of success for womens sports that we want.”
—Christine H. B. Grant, U.S. university athletic director. As quoted in the Chronicle of Higher Education, p. A42 (May 12, 1993)
“...a fixed aim furnishes us with a fixed measure, by which we can decide whether such or such an action proposed is worth trying for or not, and as aims must vary with the individual, the decisions of any two people as to the desirableness of an action may not be the same.”
—Anna C. Brackett (18361911)