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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1056 |
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If Yen plummets in value against the British Pound, investors will buy significant quantities and sell these Yen for Euros, Dollars, Pesos, and for various other currencies as long as they can make a profit in doing this. The result is stability in the Yen. (This assumes all mentioned currencies use free float system)...
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The result is stability in the Yen. (This assumes all mentioned currencies use free float system). Also some uncertainty is an acceptable cost for the efficiency of a currency value that adjusts quickly to eliminate disequilibria.
Another currency exchange market is the fixed rate. This is when governments come to an agreement between each other about the exchange rates...
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