Forex

Exchange rate regimes are classified on the basis of the flexibility of monetary And show the authorities towards the fluctuations in exchange rates and traditionally Is divided into 2 categories, namely systems with a fixed exchange rate and


With flexible exchange rate regimes. In the former regime and exchange rate Is usually a political decision, in the recent market-determined prices Troops, according to supply and demand .These systems are often referred to as the fixed peg (sometimes also described as “It’s hard peg”), and floating systems. But, as usual, between these two extreme positions There is also a range of different systems and intermediaries with limited flexibility, Usually referred to as “soft pegs”. In the following, some of these systems is described in the short to show the possibilities There are to choose the exchange rate.