Scribd Logo
Upload

Welcome to Scribd!

  • WhatsApp Image 2021-08-26 at 12.08.52 PM

    Uploaded by

    Abdul Qayum
    7 views1 page
    The document describes different types of exchange rate systems: 1. No separate legal tender systems exist where countries share currencies with other countries and have no legal tender of their own, like El Salvador and Panama. 2. Currency board systems exist where a country issues its own currency at a fixed rate against another currency, like Bulgaria. 3. Conventional fixed peg systems peg a country's currency at a fixed rate to another currency or basket of currencies, allowing small fluctuations, like Barbados and Venezuela.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document describes different types of exchange rate systems: 1. No separate legal tender systems exist where countries share currencies with other countries and have no legal tender of their own, like El Salvador and Panama. 2. Currency board systems exist where a country issues its own currency at a fixed rate against another currency, like Bulgaria. 3. Conventional fixed peg systems peg a country's currency at a fixed rate to another currency or basket of currencies, allowing small fluctuations, like Barbados and Venezuela.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views1 page

    WhatsApp Image 2021-08-26 at 12.08.52 PM

    Uploaded by

    Abdul Qayum
    The document describes different types of exchange rate systems: 1. No separate legal tender systems exist where countries share currencies with other countries and have no legal tender of their own, like El Salvador and Panama. 2. Currency board systems exist where a country issues its own currency at a fixed rate against another currency, like Bulgaria. 3. Conventional fixed peg systems peg a country's currency at a fixed rate to another currency or basket of currencies, allowing small fluctuations, like Barbados and Venezuela.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Type of exchange rate Description Examples

    No separate legal Countries have no legal tender of F ol i ar


    tender their own. Shares currencywith El Salvador
    other countries. Panama
    Zimbabwe

    Currency board This system exlstswhere a country EastCaribbeanCurrency


    only Issues its own currency at a fixed Unit
    rate against another one. Bulgaria

    Conventional fixed These systems peg a countrYs Barbados


    Peg currency at a fixed rate to another Cameroon
    currency or basket of currencies. Jor.n
    The exchange rate Is allowed to Saudi Arabia
    fluctuate bya small amount, Venezuela
    usually less than 196.

    Crawling peg and In thls system, the currency Is Argentina


    'crawl-like'sYstem adjusted when required following Botswana
    changes In economic circumstances ChMa
    such as inflationary pressures relative
    to trading partner&

    Managed floating This Is where the rate is allowed to Afganistan


    adjust and where no specific rate Brazil
    Is targeted, but where a particular Kenya
    objective may be tameted, such as India
    trying to achieve a balance of
    payments with trading partners.

    Free floating This Is where a national currency Australia


    or esingle'currency is free to find Its Chile
    own level against other currendes, Euro-zone19
    and where any intervention is simply Japan
    to remove volatility. UK
    USA

    Source:IMF2012 rhttpdAwiwimfog/extemal/pubsinfrl2012/eaer/u2012.pd0

    You might also like