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Preferred term

fixed exchange rate  

Definition

  • A fixed exchange rate is a monetary regime adopted by a nation's government or its central bank in the context of its international trade and finance to maintain a fixed price of its currency in terms of the currency (or a basket of currencies) of its major trading partner(s). The fixed exchange rate is achieved through a nation's intervention (buying and selling) of the designated currencies on the foreign-exchange market, a private entity. [Source: Encyclopedia of Business in Today's World; Fixed Exchange Rate]

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https://concepts.sagepub.com/social-science/concept/fixed_exchange_rate

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