TeachMeFinance.com - explain Fixed Exchange
Fixed Exchange -- 1. When Governments or their Central Banks administratively set the exchange rate for their currency.
2. An administratively set exchange rate where no rate fluctuations are permitted.
Fixed exchange -- If foreign exchange is quoted in the
money of the country where issued, but is payable in the
money of the country where collection is to be made, it is
called fixed exchange. For instance, exchange on London is
quoted in dollars in New York and is, therefore, fixed exchange.
The pound sterling is the basis and the amount in
dollars (and cents) fluctuates instead of the pound sterling.
The opposite of fixed exchange is movable exchange; see
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