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Preferred term

flexible exchange rate regime  

Definition

  • In contrast to the fixed exchange rate regime, the flexible exchange rate system encompasses various forms of exchange rate regimes that allow the exchange rate of two nations to be determined by the demand and supply of the currencies in the foreign-exchange market. The term floating exchange rate is also used to describe the general form of the flexible exchange rate in the system. [Source: Encyclopedia of Business in Today's World; Flexible Exchange Rate Regime]

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URI

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

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