Fixed exchange rate definition

A country's decision to tie the value of its currency to another country's currency, gold (or another commodity), or a basket of currencies. In practice, even fixed exchange rates fluctuate between definite upper and lower bands, leading to intervention.

Related words

Futures ContractFixed exchange rateFRAForward PointsForwardForeign Exchange MarketForeign Exchange RiskForex Charting SoftwareForeign funds