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Glossary

Terms6 shown

Fixed exchange rateAn exchange-rate regime set by the government or central bank and maintained at a target level through market intervention.
Exchange rateThe conversion ratio between two currencies, indicating how much quote currency can be exchanged for one unit of the base currency.
Floating exchange rateAn exchange-rate system determined primarily by supply and demand in the foreign-exchange market, in which the government or central bank does not commit to maintaining a specific price.
Crawling peg exchange rateAn exchange-rate regime that allows the peg target to adjust gradually over time to reflect economic conditions or changes in the value of a reference currency.
Currency converterA tool that calculates the equivalent amount of one currency in another currency based on current exchange rates.
pegged exchange rateAn arrangement that maintains a target exchange relationship between the domestic currency and a reference currency or basket of currencies; the specific fluctuation band depends on the system adopted.

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Definition

Currency converter

A tool that calculates the equivalent amount of one currency in another currency based on current exchange rates.

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