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Policy of exchange rates

The exchange rate's policy is the systematic plan through which a country negotiates its own currency in accordance with the foreign currency and the exchange market. The exchange policy is closely associated with the monetary policy as the two are dependent on similar factors. The common types of exchange rate's policy are the floating policy, where the exchange rate market is capable of demonstrating the exchange rate movements. Another type is the pegged float policy, where the world-centralized bank tracks the rate and prevents form deviating widely from the brand value. The third one is the fixed rate policy, where the currency-to-currency tie is carried out.