Tag Archives | Exchange-Rate

3 Major Systems of Exchange-Rate

The following points highlight the three major systems of exchange-rate. The systems are: 1. Purely Floating Exchange Rates System 2. Fixed Exchange Rates System 3. Managed Exchange Rates System. 1. Purely Floating Exchange Rates System: Under this system exchange rates are completely flexible and move up and down due to changes in the factors influencing supply and demand. And the [...]

By Samia Rekhi|2016-05-16T07:46:41+05:30May 16, 2016|Exchange Rate|Comments Off

Role of Government and Exchange Rate

For managing the exchange rate the government has to buy or sell foreign exchange as and when needed. This is known as intervention. For example, the US government on a particular day might buy $1 billion worth of US dollar with British pounds. This would cause a rise in value, or an appreciation of the dollar. Here the US government [...]

By Samia Rekhi|2016-05-16T07:46:38+05:30May 16, 2016|Exchange Rate|Comments Off

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