When the government or central bank sells its currency at a constant price in terms of another currency,it has established:

Question

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When the government or central bank sells its currency at a constant price in terms of another currency, it has established a fixed exchange rate. A dirty float refers to a fluctuating exchange rate that is influenced by market forces, while a floating exchange rate allows for market forces to determine the exchange rate. Dollarization is when a country adopts a foreign currency as its official currency.

When the Government or Central Bank Sells Its Currency at a Constant