fixed exchange rate - Business Definition
fixed exchange rate - Cultural Definition
An exchange rate that is officially controlled by the issuing country rather than determined by the world currency market conditions. (Compare floating exchange rate.)
fixed exchange rate - Investment & Finance Definition
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 © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.