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Should a central bank use its currency reserves to support the value of its Currency

Should a central bank use its currency reserves to support the value of its currency in the currency market What can be achieved with this intervention Description of the exchange rate systems https www elblogsalmon com conceptos de economía que son los tipos de cambio Exchange rates can be defined as the price of a foreign currency unit expressed in terms of the national currency You can express the price of our moneta in terms of another foreign currency an example would be the value of euro on the dollar would be 1 35 it also happens in the opposite case that 1 dollar is equal to 0 74 Euros This comparison can be given in all currencies that exist in the world in short are the ways in which monetary transactions are currently made Within exchange rates we can speak of two types Real exchange rate it is in which the relative price of goods and services is valued depending on the amount

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