Learn how floating exchange rates work, driven by forex market supply and demand, and compare with fixed rates to grasp their impact on global economies.

Put simply, exchange rates compare the value of one currency to another. They measure how much of one currency it takes to purchase a unit of another. Exchange rates are ultimately determined in ...

Many economists argue that a flexible exchange rate regime is preferable to a fixed exchange rate regime because it helps to insulate the domestic economy from adverse external shocks. For example, ...

After many years in which the US consistently pushed China to move in the direction of a market-determined exchange rate, the Trump Administration is now pushing China to effectively fix its exchange ...

The U.S.-China trade war and anti-Beijing protests in Hong Kong are testing the strength of the Hong Kong dollar’s 36-year peg to the U.S. dollar, which has helped make it an attractive market for ...

The Economic Issues series was inaugurated in September 1996. Its aim is to make some of the economic research being produced in the International Monetary Fund on topical issues accessible to a broad ...

Exchange rates play a crucial role in the global economy, influencing trade, investment, and economic stability. Understanding the various measurements and regimes of exchange rates is essential for ...

The foreign exchange rate is the rate at which one currency is exchanged for another. For example, if you want to exchange U.S. dollars (USD) for Euros (EUR), the exchange rate will determine how many ...

Today’s economic reality includes a world of free-floating fiat currencies, where the value of a nation’s currency is determined by supply and demand in the global foreign exchange or forex market.

Analysts at the Afrinvest west Africa have predicted the Central Bank of Nigeria (CBN) will in the next five years, retain the currency fixed exchange and allow gap between official and market-led ...

An exchange rate is how much of a given nation’s currency you can buy with a different nation’s currency. If you purchase foreign goods or travel abroad, you may need to convert your currency to ...