Types of Exchange Rates

Exchanged rates can be divided into two namely; fixed and floating exchanged rates. The first one which is fixed type of exchanged rates out s an exchanged rates where countries pegged or fixed their currencies to a generally and widely acceptable currency such as the dollars. But in a floating type of exchanged rate, countries allow market forces to regulate their currency rate. Most countries make use of floating type of exchanged rate but countries like Nigeria uses fixed exchanged rate type by pegging the nation's currency against US dollars.