A fixed exchange rate is the exchange rate

regime of a currency unit whose value is

1. (buying or selling the adjusted according to the value of another
currency). reference currency, a basket of currencies,
2. indirect intervention or a measure of value, such as gold.
policies (lowering or 1. stabilizes the value of a currency
raising interest rates. with respect to the one that is fixed.
3. 2. facilitates trade and investment
if Argentina links its between countries with linked
currencies.
currency to the US
3. serves to control inflation. However,
dollar. since the reference value goes up
and down..

1. in which the
government of a
country establishes the 1.in which the government
value of its national
currency by associating of a country does not
the value with that of establish the value of its
the currency of another national currency
country.
2.maintain fixed
2. doesnt maintain fixed
exchange rates the exchange rates the central
central bank of the bank of the country
linked country 3.Doesnt save amounts of
3.stored large amounts
of the currency to the currency to which it is
which it is linked in its linked in its reserves.
reserves.