Fixed Exchange-rate System

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.

Read more about Fixed Exchange-rate System:  History, Mechanism, Hybrid Exchange Rate Systems, Advantages, Disadvantages, See Also

Other articles related to "system":

Fixed Exchange-rate System - See Also
... Exchange rate regime Floating exchange rate Gold standard Bretton Woods system Nixon Shock Smithsonian Agreement Foreign exchange fixing ...

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