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FINS1612 Exam Notes Understand the nature of global FX markets o Floating exchange rate regime - the exchange rate for a country is allowed to move. O Crawling peg regime - allows the currency to appreciate gradually over time but within a range established by the government o Pegged rate - currency directly linked to another country o FX dealers and brokers o central banks - influence exchange rate, change composition of holdings of foreign currencies in managing official reserve assets.
FINS1612 Exam Notes Understand the nature of global FX markets o Floating exchange rate regime - the exchange rate for a country is allowed to move. O Crawling peg regime - allows the curren…