Fixed exchange rates financial definition of Fixed exchange rates. Fixed exchange rates finance term by the Free Online Dictionary.

Fixed exchange rate

A country's decision to tie the value of its currency to another country's currency, gold (or another commodity), or a basket of currencies.

Fixed Exchange Rate

An exchange rate for a currency where the government has decided to link the value to another currency or to 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 peg (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. Importantly, fixed exchange rates do not change according to market conditions. It is also called a pegged exchange rate.

fixed exchange rate

An exchange rate between currencies that is set by the governments involved rather than being allowed to fluctuate freely with market forces. In order to keep currencies trading at the prescribed levels, government monetary authorities actively enter the currency markets to buy and sell according to variations in supply and demand. Compare floating exchange rate. See also devaluation.

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Bimetallism Bretton Woods Agreement Dirty Float Exchange Rate Flexible Exchange Rate Floating Currency Floating Exchange Rate floating rate Gold Exchange Standard Managed Currency Managed Float Peg Pegged Exchange Rate Pegging PPP Purchasing Power Parity	In 1971, when the "buy and sell" method shifted from fixed exchange rates to floating ones, at that time, an inter-bank market took place which in today''s time we know as FOREX or FX or Foreign Exchange Market. Foreign Exchange Market Features by Cristian Stan / Banking, finance and accounting community Expectations that Gulf countries will reform fixed exchange rates has mounted in the past week after the UAE central bank governor said he could track a basket of currencies in concert with Gulf neighbours to help contain inflation. Bahrain 'may opt for Saudi riyal in GCC shift' by Gulf Daily News (Manama, Bahrain) The Chinese were not the only country to do this; from the end of World War II until 1970, Western European countries all maintained fixed exchange rates with the US dollar based on the Bretton Woods system. Currency Day Trading - Establishing Trend and Profitability by Paul Graham / Finance and Investment community	Five Against Note Spread Five Cs of Credit Five Hundred Dollar Rule Five Percent Rule five-hundred-dollar rule five-percent rule Five-Year Plan Five-Year Rule Fix Fixation Fixed Annuities Fixed Annuity Fixed Asset Fixed Asset Turnover Fixed Asset Turnover Ratio fixed assets Fixed base index Fixed Benefits fixed bid Fixed Capital Formation Fixed Cost Fixed Coupon Fixed Currency Fixed dates Fixed Exchange Rate Fixed exchange rates fixed expenses Fixed for Floating Swap Fixed Income Fixed Income Clearing Corporation Fixed Income Equivalent Fixed Income Instruments Fixed Income Market Fixed Interest Rate fixed lease Fixed Premium Fixed Price Fixed Price Basis Fixed Rate Fixed Rate Loan Fixed Term Lease Fixed Trust Fixed-Charge Coverage Fixed-Charge Coverage Ratio Fixed-dollar obligations Fixed-Dollar Security Fixed-Income Arbitrage Fixed-Income Investment Fixed-Income Securities Fixed-Income Security Fixed-price tender offer	Fixed Dose Method Fixed DRAM fixed dressing Fixed Drop Cross-Connect Card Fixed Drug Combination fixed drug eruption fixed drug eruption fixed drug reaction Fixed Duration Employee Fixed Dynamical Heating Model fixed echo Fixed Effects Instrumental Variable Fixed effects model Fixed Electrical Ground Power fixed emplacement Fixed Encoder, Adaptive Decoder Fixed Encoder, Adaptive Decoder Optimized Hybrid Digital-Analog fixed end Fixed end moment Fixed end moment Fixed end moments Fixed End System Fixed energy Reponse function Analysis with Multiple Efficiency fixed eruption fixed eruption fixed eruption fixed eruption Fixed Exchange Fixed exchange rate Fixed exchange rates Fixed exchange rates between the euro and old european currencies Fixed exchange rates between the euro and old european currencies Fixed exchange rates between the euro and old european currencies Fixed expansion gear fixed expansion prosthesis fixed expansion prosthesis fixed expansion prosthesis Fixed Expense Fixed Expense Fixed Expense Fixed Expenses Fixed Expenses Fixed Expenses Fixed Expenses Fixed expression Fixed expression Fixed Facility Checklist Fixed fact Fixed factors of production Fixed factors of production Fixed factors of production Fixed Federal Monitoring Network Fixed Fee Procurement fixed fee schedule Fixed field Fixed field Fixed Filter fixed fin Fixed Fire Extinguishing System Twinned Agent Fixed Flexion Deformity

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References in periodicals archive

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Bimetallism
Bretton Woods Agreement
Dirty Float
Exchange Rate
Flexible Exchange Rate
Floating Currency
Floating Exchange Rate
floating rate
Gold Exchange Standard
Managed Currency
Managed Float
Peg
Pegged Exchange Rate
Pegging
PPP
Purchasing Power Parity

In 1971, when the "buy and sell" method shifted from fixed exchange rates to floating ones, at that time, an inter-bank market took place which in today''s time we know as FOREX or FX or Foreign Exchange Market.

Foreign Exchange Market Features by Cristian Stan / Banking, finance and accounting community

Expectations that Gulf countries will reform fixed exchange rates has mounted in the past week after the UAE central bank governor said he could track a basket of currencies in concert with Gulf neighbours to help contain inflation.

Bahrain 'may opt for Saudi riyal in GCC shift' by Gulf Daily News (Manama, Bahrain)

The Chinese were not the only country to do this; from the end of World War II until 1970, Western European countries all maintained fixed exchange rates with the US dollar based on the Bretton Woods system.

Currency Day Trading - Establishing Trend and Profitability by Paul Graham / Finance and Investment community

Five Against Note Spread

Five Cs of Credit

Five Hundred Dollar Rule

Five Percent Rule

five-hundred-dollar rule