explain the fixed exchange rate flexiable exchange rate and managed floating exchange rate
Answers
Answer:
A managed or dirty float is a flexible exchange rate system in which the government or the country's central bank may occasionally intervene in order to direct the country's currency value into a certain direction.
Answer:
A floating exchange rate is determined by the private market through supply and demand. A fixed, or pegged, rate is a rate the government (central bank) sets and maintains as the official exchange rate. The reasons to peg a currency are linked to stability.
Unlike the fixed rate, a floating exchange rate is determined by the private market through supply and demand. A floating exchange rate is constantly changing. In reality, no currency is wholly fixed or floating. In a fixed regime, market pressures can also influence changes in the exchange rate.