Created: 1 year ago | Updated: 8 months ago | Created By:
Maliha Mou
Maliha Mou
Flexible Exchange Rate
Topic: India
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.

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