Exchange rates

Exchange rates are defined as the price of one country's' currency in relation to another. Exchange rates may be expressed as the average rate for a period of time or as the rate at the end of the period. Exchange rates are classified by the International Monetary Fund in three broad categories, reflecting the role of the authorities in the determination of the exchange rates and/or the multiplicity of exchange rates in a country: the market rate, in which the rate "floats" and is largely set by market forces; the official rate, in which the rate is "fixed" by a country's authorities; and arrangements falling between the two, in which the rate holds a stable value against another currency or a composite of currencies. This indicator is measured in terms of national currency per US dollar.

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Keywords: exchange rate