Flexible Exchange-rate System

An exchange rate system whereby a nation allows market forces to determine the international value of its currency.

In today's world, the majority of the world's currencies have some flexibility but central banks often participate in the markets to attempt to influence exchange rates. Such currencies include the most widely traded currencies: the U.S. dollar, the euro, the Norwegian krone, the Japanese yen, the British pound, the Swiss franc, the Australian dollar, and the Canadian dollar.
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