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Meaning of fixed exchange rates

 

 

 

Fixed exchange rates

 

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Business glossary

 

Meaning of term fixed exchange rates :

 

A fixed exchange rate system is one where the value of the currency against other currencies remains the same. The fixed rate is maintained by governments by intervening in the foreign exchange market using foreign exchange reserves to buy and sell the currency to maintain the fixed rate.

 

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Fixed exchange rates

 

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