Kind of exchange rate
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
Expert
The Flexible exchange rate has no official intervention. This is recognized by the interaction of demand and supply in the foreign exchange market.
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Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.
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