In most cases, the exchange rates are determined by the forces of supply and demand - known as flexible exchange rates. However, almost all central banks influence the price by buying and selling currency to limit fluctuations - known as a managed float or %26quot;dirty%26quot; float. Some nations fix the price of their currency to that of another country. This is the case of the Chinese yuan or renminbi. Known as a pegged exchange rate.
How is the exchange rate of a particular currency against another currency decided?? Who decides it?
The market decides it, no one person or organization decides.
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