This system is a hybrid of the fixed and flexible exchange rate systems in which the government of the economy attempts to affect the exchange rate directly by buying or selling foreign currencies or indirectly, through monetary policy (i.e., by lowering or raising interest rates on foreign currency bank accounts, affecting foreign investment, etc.).
Most economies have shifted to this system, including India
Almost all countries tend to intervene when the markets become disorderly or the fundamentals of economics are challenged by the exchange rate of the time.
FOR MORE DETAIL NOTES in This Topic… JUST STAY CONNECTED
For Videos Join us on Youtube-
275 total views, 8 views today