fixed exchange rate

fixed exchange rate definition - finance
An exchange rate that is set by the central bank or governmental monetary authorities. This is in contrast to floating exchange rates that are determined by the market. One country that uses a fixed exchange rate is China, which pegs its yuan to the U.S. dollar.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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