BronxNerd Posted March 16, 2011 Report Share Posted March 16, 2011 Hey People! Can someone please explain to me what a Fixed Exchange Rate is? I am so confused right now and I have to finish this IA!Come on, anyone?Thanks a lot! -__- Reply Link to post Share on other sites More sharing options...
Summer Glau Posted March 17, 2011 Report Share Posted March 17, 2011 (edited) If it's such an easy question why can't you answer it yourself?! Remember that people voluntarily help each other here. No one has to help you at all if they don't want to. Just to remind you, there is also a wonderful search engine called Google that you also could have used to look this up To answer your question: a fixed exchange rate is a system where the government or central bank tries to maintain their currency value at a certain level (usually a range). (ex the Chinese government will try to keep the value of Chinese yuan between 0.75 and 0.85 US dollars - this is a hypothetical example, I don't know what the real exchange rate is) They usually peg (link) the value of their currency to another. For example the value of the Chinese yuan is pegged to the US dollar. Edited March 17, 2011 by Summer Glau 2 Reply Link to post Share on other sites More sharing options...
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