A fixed exchange rate is a regime applied by a government or central bank that ties the country's official currency exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band.

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19-12-2022
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A fixed exchange rate is a regime applied by a government or central bank that ties the country's official currency exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band.

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charithran8975 charithran8975 · Answer 1 · 2022-12-22T02:00:41-05:00

A fixed exchange rate system's goal is to maintain a currency's value within a specific range.

A fixed exchange rate is a system used by a government or central bank that links the value of the nation's official currency to the currency of another nation or the price of gold. A fixed exchange rate system's goal is to maintain a currency's value within a specific range.

A fixed exchange rate system's goal is to maintain a currency's value within a specific range.

Fixed exchange rates assist the government maintain low inflation and provide exporters and importers more security.

In the early 1970s, the floating exchange rate system was adopted by several industrialized countries.

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