FAQ

Exchange Rate  Rate it

In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of Japanese yen (JPY, ¥) to the United States dollar (US$) means that will be exchanged for each US or that US will be exchanged for each . read more...read more...

Currency Pair  Rate it

A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency or quote currency and the currency that is quoted in relation is called the base currency or transaction currency.
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Floating Exchange Rate  Rate it

A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies. Thus, floating exchange rates change freely and are determined by trading in the forex market. This is in contrast to a "fixed exchange rate" regime. read more...read more...

Fixed Exchange Rate  Rate it

A country's exchange rate regime under which the government or central bank ties the official exchange rate to another country's currency (or the price of gold). The purpose of a fixed exchange rate system is to maintain a country's currency value within a very narrow band. Also known as pegged exchange rate. read more...read more...

Linked Exchange Rate System  Rate it

A system of managing a nation's currency and exchange rate by linking the national currency to another base currency that is held at a fixed ratio in deposit at domestic banks. read more...read more...

Managed Float Regime  Rate it

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. read more...read more...

Freely Convertible Currency  Rate it

A currency that can be readily bought or sold without government restrictions, in order to purchase another currency. read more...read more...

Exchange Rate Regime  Rate it

An exchange rate regime is the way an authority manages its currency in relation to other currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors. read more...read more...
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