Fixed exchange-rate system Archives - Orrisa PCS Exam Notes

DMPQ- Trace India’s progress towards market exchange rate.

Managed float regime is the current international financial environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries’ exchange rates by buying and selling currencies. It is also known as a dirty float. India’s exchange rate policy has evolved over time in line with the gradual opening … Read more DMPQ- Trace India’s progress towards market exchange rate.

DMPQ- Highlight the major determinants of currency exchange rates.

Exchange rate determination is either as pegged/fixed exchange rates or market-determined exchange rates. Pegged or fixed exchange rates are determined as a direct intervention of the central bank in deciding on the exchange rates. There are certain variants to such interventions like: Currency Board The central bank of a country pegs the home currency to … Read more DMPQ- Highlight the major determinants of currency exchange rates.