Because central banks have not been willing to give up their option of intervening in the foreign exchange market,the current international financial system can best be described as a

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The current international financial system is a hybrid of a fixed exchange rate and flexible exchange rate system because while some countries have pegged their currencies to a fixed exchange rate, other currencies float freely in the market. Additionally, central banks still intervene in the foreign exchange market to maintain stability, which is a characteristic of a fixed exchange rate system.

Because Central Banks Have Not Been Willing to Give Up