Exchange Rate Mechanism Of The Foreign Exchange Market
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Exchange Rate Mechanism Of The Foreign Exchange Market
The World Bank is highly involved in the exchange rate mechanism of the foreign exchange market. As a lender to developing third world countries, the World Bank is always working to provide funding for public sector project. Their goal is to help third world countries develop their infrastructure, their economy educational system, utilities, and so forth. Because they are working with different countries with different currencies, it is important for the World Bank to have current exchange rates to provide countries with the correct amount. To ensure fairness, the World Bank will utilize a fixed exchange rate. Fixed exchange rates
helps governments keep inflation low and interest rates down. This exchange rate is perfect for developing counties where as a floating exchange rate is better for developed countries. While many counties are no
longer using the fixed exchange rate, this system is still ideal for developing countries.
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