What is meant by fixed exchange rate?
What is meant by fixed exchange rate? A fixed exchange rate is a regime applied by a government or central bank that ties the country's official currency exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band. Does the Philippines have a fixed exchange rate? What is the country's foreign exchange policy? At present, the country's exchange rate policy supports a freely floating exchange rate system whereby the Bangko Sentral ng Pilipinas (BSP) leaves the determination of the exchange rate to...