Sentences with phrase «floating currency exchange rate»
One cash flow is generally fixed, while the other is variable, that is, based on a a benchmark interest rate, floating currency exchange rate, or index price.
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With the floating of the currency in 1983, the first of these goals has been interpreted to mean price stability, rather than literally the stability of the exchange rate.
This kind of money has been made by speculating on Brazilian, Indian and Chinese securities and those of other countries whose exchange rates have been forced up by credit - flight out of the dollar, which has fallen by 7 % against a basket of currencies since early September when the Federal Reserve floated the prospect of quantitative easing.
On 10 November, the central bank abandoned the rouble's trading corridor, allowing the currency to float freely, stabilising the exchange rate.
Wars, periods of high inflation, lapse of the gold standard, introduction and lapse of the Bretton Woods agreements and adoption of the current floating exchange rate system in 1973 drove currency fluctuations.
Most of the Asian economies with freely floating currencies have experienced some exchange rate falls against the US dollar in recent months.
The dollar became a fiat currency, one backed by an arbitrary decree from the U.S. and the floating exchange rates we have today were born.
But the capacity of the floating exchange rate to respond to terms of trade changes — with the currency tending to appreciate when international commodity prices rise — is an important shock absorber for the Australian economy.
The foreign exchange market began in the 1970's when free exchange rates and floating currencies were introduced.
The collapse of Bretton Woods system in 1973 and the shift of major currencies to floating exchange rate regimes lessened the reliance on the SDR as a global reserve asset.
But if your country's exchange rate is floating, the value of the currency could go up or down, and you'd want to adjust the cost of your goods to ensure you're still making money.