Capital account Archives - CGPCS Exam Preparation

DMPQ- Highlight the major determinants of currency exchange rates.

Exchange rate determination is either as pegged/fixed exchange rates or market-determined exchange rates. Pegged or fixed exchange rates are determined as a direct intervention of the central bank in deciding on the exchange rates. There are certain variants to such interventions like: Currency Board The central bank of a country pegs the home currency to … Read more

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