3 the exchange rate regime

Every state has the approach to its currency, the so-called exchange rate regime, which is practiced by the monetary control of the country. In total there are 3 modes of exchange rates: 1. Floating. 2. Controlled. 3. Fixed, which consists in the precise definition of it, or linked to other, more stable currencies, ie application of the so-called systems curency board, thereby strengthening the national currency, making it real money, and trust in the country and abroad. This mode is used in the 1991-1997 years, Argentina, Estonia, Lithuania, Bulgaria, Bosnia. The experience of these countries suggests that this strategy allows you to: rapidly reduce inflation, strengthen fiscal policy, to restore confidence in the national currency, and to create conditions for economic growth. It should say that to get permission to conduct such a regime is not as easy to run a lot of financial performance. In Ukraine, currently operating mode managed floating exchange rate. NBU sets the daily foreign exchange rate of hryvnia to foreign currencies. Here's how. Currency, the hryvnia to which is attached, is the U.S. dollar. According to the results of daily trading on the interbank foreign exchange market, the NBU sets the exchange rate UAH. the dollar (based on certificates of commercial banks, which are served by a certain time), the official hryvnia exchange rate against other currencies are calculated through cross-rate U.S. dollar to other currencies to be installed on the international currency markets and publishes a newspaper, for example, "Financial Times". Category: Foreign Exchange Market | Tags: 3 modes