vahetuskursisüsteemil

A vahetuskursisüsteem (exchange rate system) refers to the way a country manages its currency in relation to other currencies. It is a framework that determines how the value of a nation's currency is set in the foreign exchange market. There are generally two main types of exchange rate systems: fixed and floating.

In a fixed exchange rate system, a country pegs its currency's value to another currency, a basket of currencies, or a specific commodity like gold. The central bank intervenes in the foreign exchange market to maintain this predetermined rate. This system provides certainty and stability for international trade and investment but can limit a country's monetary policy independence and may require significant foreign exchange reserves to defend the peg.

A floating exchange rate system, on the other hand, allows a currency's value to be determined by market forces of supply and demand. The exchange rate fluctuates freely in response to economic factors, trade balances, and capital flows. This system offers greater monetary policy flexibility but can lead to exchange rate volatility, which may create uncertainty for businesses.

Hybrid systems, often referred to as managed floats or dirty floats, exist where a currency is largely allowed to float but the central bank may intervene occasionally to smooth out excessive volatility or to influence the exchange rate in a desired direction. The choice of exchange rate system has significant implications for a country's economic stability, competitiveness, and policy options.