Fixed Currency

Fixed Currency

A currency to which the government has linked the value of another currency or, rarely, some valuable commodity like gold. For example, under the Bretton Woods System, most world currencies fixed themselves to the U.S. dollar, which in turn fixed itself to gold. A government may fix its currency by holding reserves of the other currency (or the asset to which it is fixed) in the central bank. For example, if a country fixes its currency to the British pound, it must hold enough pounds in reserve to account for all of its currency in circulation.
References in periodicals archive ?
Nielsen as its new global chief economist, and as head of Economics & Fixed Income/ Fixed Currency (FI/FX) Research, effective from September 1, 2011.
The fixed currency peg means Latvia was unable to weaken the lats to support exports last year, when the Polish zloty dropped 13 percent, and Iceland's krona plunged 46 percent.
Four students, including student club leader Sawsan Jaad, asked the king during a brief encounter for a 50-percent increase in allowances for dependents of the students, compensation for day-care services for students with children and a favorable adjustment to the fixed currency exchange rate of allowances.
All foreign participants at the book fair are given a catalogue with fixed currency rates to which they have to comply.
Proponents of the bill argue that it will help combat China's fixed currency rate, which they say artificially lowers the price of its goods by as much as 40% and encourages the offshoring of manufacturing.
Rice also called on China to have an open trading policy, citing concerns about intellectual property rights, the fixed currency and continued government ownership of large parts of the economy.
Most important among these problems was that with a fixed currency there was no system for financial and other markets to correct themselves.
While welcoming recent steps by China and Malaysia to scrap their fixed currency systems, finance ministers from the Asia-Pacific Economic Cooperation forum said ''some economies'' should seek ''greater exchange rate flexibility,'' according to a joint statement issued after their talks on the South Korean resort island of Jeju.
Treasury Secretary John Snow here Friday, looking at the economies of the two countries, development issues, high oil prices and China's fixed currency system.
Some US politicians and industry leaders have accused China of unfair trade practices and blamed its fixed currency policy for keeping the price of its exports artificially low.
Mr Briggs says he wants to remind people about the dangers of following the rest of Europe into a fixed currency so that MDs don't have to face telling their staff they are on the dole.
These propositions are first, whereas the Japanese economy could rely on the Bretton Woods system of fixed currency exchange rates and increased trade volumes among GATT member states before 1971, it subsequently had to deal with the negative consequences of the liberalization of international financial markets and America's objection to continued massive trade deficits with Japan.