Advantages of floating exchange rate systems

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  • Created by: samadhi
  • Created on: 23-04-13 23:07
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  • Advantages of floating exchange rate systems
    • The exchange rate automatically adjust so that the supply of the currency equals the demand
    • There is no need for the central bank to keep foreign reserves
    • the government can pursue its own domestic policies
    • It prevents imported inflation
    • Reduces speculation

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