What is Fixed exchange rate system?
In a '''fixed exchange rate''', a state authority defines an [[exchange rate]] of its own [[currency]], against another currency, a basket of currencies, or some good, such as [[gold]]. The central bank of the country will then guarantee this exchange rate; it will buy or sell its currency at this rate. ==Related pages== * [[Bretton Woods system]] * [[Floating exchange rate]] [[Category:Fixed exchange rate]]