Foreign cashback forex calculator Online cashbackforexpipcalculator cashbackforexcalculatorOnline also known as the central exchange cashback forex two or more countries of the official exchange rate between their currencies to provide a fixed ratio of countries in order to ensure the stability of the exchange rate, generally provide for the market exchange rate fluctuations around the cashbackforexprofitcalculator exchange parity of the upper and lower limits in the gold standard system, countries are required to the gold content of the currency, the ratio of the gold content of the two countries unit of currency is called the mint parity, it is the basis for determining the exchange rate because gold can Free output input, the exchange rate is always around the mint parity in the gold output point and gold input point fluctuations between the exchange rate under this system is relatively stable, known as the fixed exchange rate system after the collapse of the gold standard system, the value of national currencies lost the basis of stability, the exchange rate fluctuations make the international monetary order chaos 1944 meeting held in the United States Bretton Woods, decided in the post-war is still the implementation of the fixed exchange rate system. That is, an adjustable fixed exchange rate system is the dollar and gold to maintain a fixed ratio, between national currencies and the dollar to determine a fixed ratio, which is the International Monetary Fund legal exchange rate for the maintenance of the Bretton Woods system under the foreign exchange parity, the International Monetary Fund and the member countries to make a number of efforts, but because of the dollar constantly crisis, while the currency status of the member countries are often In February 1973, after the second devaluation of the dollar, the Bretton Woods system under the fixed exchange rate system collapsed in this situation, the vast majority of national currencies are decoupled from the dollar, the implementation of floating exchange rate system, but in order to maintain the stability of the exchange rate, countries still peg their currencies to a certain currency or a basket of currencies to determine the foreign exchange Parity At present, the International Monetary Fund countries to determine the foreign exchange parity are mainly: ① through a cooperative arrangement to determine the parity, such countries are mainly the European Community member states community member currencies to implement the snake floating, that is, the member states to determine the foreign exchange parity of their currencies between each other, the formation of a parity network, so that the foreign exchange parity check each other to maintain exchange rate stability, the external is to implement a joint float 19 In 1978, the European Community countries set up the European Monetary System, and created the European Monetary Unit in this system, the national currencies and the European Monetary Unit to determine the foreign exchange parity, in addition, also used to implement the joint float when the lattice system (that is, through the two pairs between the currencies of member countries and the establishment of a parity network), through the combination of the lattice system and the basket system, so that the foreign exchange parity of countries linked together ② implement the system of pegging SDRs, that is, to determine the foreign exchange parity of the local currency and SDRs, and to determine the parity of the national currency with the currencies of other countries ③ implement pegging a certain freely convertible foreign exchange parity ④ neither pegging a basket of currencies, nor pegging a certain currency, but according to a series of index changes to adjust the foreign exchange parity For the implementation of direct foreign exchange control Developing countries, foreign exchange parity by the official determination, all foreign exchange transactions are according to this exchange rate, maintain foreign exchange parity is easier but for the currency can be freely convertible countries, to maintain foreign exchange parity is not easy countries in order to maintain foreign exchange parity, generally on the foreign exchange market for artificial intervention specific approach, is to set up a foreign exchange parity fund, when the market appreciation of the local currency on the sale of the local currency, to buy foreign currency and when the market on the appreciation of the local currency. When the market depreciates, the foreign currency will be sold to acquire the local currency. Although this method can maintain the relative stability of the exchange rate, it is easy to bring various hazards if the local currency depreciates sharply, even if the foreign exchange parity fund is exhausted, it may not be able to recover the trend, but at the same time the countrys foreign exchange reserves suffer huge losses. Therefore, all countries generally adjust the foreign exchange parity according to the changes of the actual situation.
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