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Floating exchange rate

Index Floating exchange rate

A floating exchange rate (also called a fluctuating or flexible exchange rate) is a type of exchange-rate regime in which a currency's value is allowed to fluctuate in response to foreign-exchange market mechanisms. [1]

38 relations: Australian dollar, Bretton Woods system, Business cycle, Canadian dollar, Central bank, Crawling peg, Currency, Currency appreciation and depreciation, Currency band, Currency basket, Currency board, Currency crisis, Currency intervention, Currency substitution, Domestic liability dollarization, Euro, European Economic Review, Exchange rate, Exchange-rate regime, Fixed exchange-rate system, Floating exchange rate, Foreign exchange market, Foreign-exchange reserves, Indian rupee, Japanese yen, Liability (financial accounting), List of countries by exchange rate regime, Managed float regime, Monetary policy, Mundell–Fleming model, Open market operation, Pound sterling, Quarterly Journal of Economics, Reserve Bank of India, Shock (economics), Smithsonian Agreement, Swiss franc, 1997 Asian financial crisis.

Australian dollar

The Australian dollar (sign: $; code: AUD) is the currency of the Commonwealth of Australia, including its external territories Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru, Papua New Guinea, Tonga, Tuvalu, and Vanuatu.

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Bretton Woods system

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australia, and Japan after the 1944 Bretton-Woods Agreement.

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Business cycle

The business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend.

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Canadian dollar

The Canadian dollar (symbol: $; code: CAD; dollar canadien) is the currency of Canada.

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Central bank

A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates.

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Crawling peg

Crawling peg is an exchange rate regime that allows depreciation or appreciation to happen gradually.

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Currency

A currency (from curraunt, "in circulation", from currens, -entis), in the most specific use of the word, refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins.

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Currency appreciation and depreciation

Currency depreciation is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system in which no official currency value is maintained.

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Currency band

A currency band is a range of values for the exchange rate for a country’s currency which the country’s central bank acts to keep the exchange rate within.

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Currency basket

A currency basket is a portfolio of selected currencies with different weightings.

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Currency board

A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency.

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Currency crisis

A currency crisis is a situation in which serious doubt exists as to whether a country's central bank has sufficient foreign exchange reserves to maintain the country's fixed exchange rate.

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Currency intervention

Currency intervention, also known as foreign exchange market intervention or currency manipulation is a monetary policy operation.

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Currency substitution

Currency substitution, dollarization, or elminting (from el-, meaning foreign) is the use of a foreign currency in parallel to or instead of the domestic currency.

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Domestic liability dollarization

Domestic liability dollarization (DLD) refers to the denomination of banking system deposits and lending in a currency other than that of the country in which they are held.

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Euro

The euro (sign: €; code: EUR) is the official currency of the European Union.

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European Economic Review

The European Economic Review is a peer-reviewed academic journal that covers research in economics.

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Exchange rate

In finance, an exchange rate is the rate at which one currency will be exchanged for another.

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Exchange-rate regime

An exchange-rate regime is the way an authority manages its currency in relation to other currencies and the foreign exchange market.

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Fixed exchange-rate system

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime where a currency's value is fixed against either the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold.

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Floating exchange rate

A floating exchange rate (also called a fluctuating or flexible exchange rate) is a type of exchange-rate regime in which a currency's value is allowed to fluctuate in response to foreign-exchange market mechanisms.

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Foreign exchange market

The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies.

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Foreign-exchange reserves

Foreign-exchange reserves (also called forex reserves or FX reserves) is money or other assets held by a central bank or other monetary authority so that it can pay if need be its liabilities, such as the currency issued by the central bank, as well as the various bank reserves deposited with the central bank by the government and other financial institutions.

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Indian rupee

The Indian rupee (sign: ₹; code: INR) is the official currency of the Republic of India.

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Japanese yen

The is the official currency of Japan.

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Liability (financial accounting)

In financial accounting, a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

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List of countries by exchange rate regime

This is a list of countries by their exchange rate regime.

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Managed float regime

Managed float regime is the current international financial environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries' exchange rates by buying and selling currencies.

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Monetary policy

Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

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Mundell–Fleming model

The Mundell–Fleming model, also known as the IS-LM-BoP model (or IS-LM-BP model), is an economic model first set forth (independently) by Robert Mundell and Marcus Fleming.

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Open market operation

An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks.

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Pound sterling

The pound sterling (symbol: £; ISO code: GBP), commonly known as the pound and less commonly referred to as Sterling, is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, and Tristan da Cunha.

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Quarterly Journal of Economics

The Quarterly Journal of Economics is a peer-reviewed academic journal published by the Oxford University Press.

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Reserve Bank of India

The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee.

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Shock (economics)

In economics, a shock is an unexpected or unpredictable event that affects an economy, either positively or negatively.

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Smithsonian Agreement

The Smithsonian Agreement is an agreement, announced in December 1971 that created a new dollar standard whereby the major currencies of the mostly highly industrialized nations were pegged to the US dollar at central rates, with the currencies being allowed to fluctuate by 2.25%.

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Swiss franc

The franc (sign: Fr. or SFr.; Franken, French and Romansh: franc, franco; code: CHF) is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d'Italia.

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1997 Asian financial crisis

The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.

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Redirects here:

Floating currency, Floating exchange, Floating exchange rater, Floating exchange rates, Free floating exchange rate, Free-floating currency.

References

[1] https://en.wikipedia.org/wiki/Floating_exchange_rate

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