The advantage of a fixed exchange rate is that it:

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A fixed exchange rate system eliminates uncertainty about the value of a currency, as the exchange rate is set and maintained at a specific level. However, fixed exchange rates may limit a country's ability to use monetary policy for macroeconomic stabilization and may not necessarily lead to trade surpluses. The twin deficits (trade deficit and budget deficit) may still occur under a fixed exchange rate system.

The Advantage of a Fixed Exchange Rate Is That It