Business/Finance

An Exchange rate Regime is one kind of management. It manages currency to other currencies and the foreign exchange market. It is associated with monetary policy. It provides various types of exchange rates such as floating exchange rate, pegged float and fixed rates. Floating exchange rate is common type of exchange rate regime. It is analyzed by linear regression model. There are some types of basic exchange rate regimes only used in these days. In this market, the value of the currency is fixed in the financial market. The floating rates are mostly used in many countries in all over the world. Some of the floating exchange rates are the United States dollar, British pound, Euro and Japanese Yen. It is also known as dirty float or a managed float. The pegged floats are available in three types such as the crawling bands, pegging with crawling bands and horizontal bands.