View source for Floating and fixed exchange rates

[[Floating and fixed exchange rates]] is currency exchange rates, such as the rate of exchange between the US dollar and the Yen, are said to ﬂoat when market forces determine the rate, depending on market demand. They are fixed when national governments (or their associated national banks) fix the rates by international agreement and intervene in international markets to hold those rates.

==Definitions==
According to the [[Corporate Strategy by Lynch (4th edition)]],
:[[Floating and fixed exchange rates]]. Currency exchange rates, such as the rate of exchange between the US dollar and the Yen, are said to ﬂoat when market forces determine the rate, depending on market demand. They are fixed when national governments (or their associated national banks) fix the rates by international agreement and intervene in international markets to hold those rates.

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