How Exchange Rates are Controlled

[tharakaf]

Ok Guys, I want to learn about something I clearly don't know. Hope it helps others as well.

Who can explain how a currency exchange rate is decided/controlled and what factors will affect it to fluctuate?

 

[hodakolla]

BUMPER

 

[fdk]

Cabral

 

[kevin_levin]

According to foreign income basically
Main effects
1.foreign income/investments
2.foreign reservations
3.economic policy

 

[buddikagayan]

I dont knw why

 

[Gunther]

Also why different banks provide different exchange rates?
Ex:
https://www.sampath.lk/en/exchange-rates
https://www.dfcc.lk/exchange-rates/

 

[pavithra_uk]

Value of LKR = foreign assets, savings (USD, Gold etc..) + export income / number of local money notes

 

[pradeepsu]

Ok Guys, I want to learn about something I clearly don't know. Hope it helps others as well.

Who can explain how a currency exchange rate is decided/controlled and what factors will affect it to fluctuate?

Assuming that you really want to know the subject, try to find the book called

Exchange Rate Determination and Control, by Giorgio Radaelli .​

This would give you an understanding.

I do have paid subscription to the resources, But I assume you would be able to find a copy from somewhere in the internet.

 

[tharakaf]

Assuming that you really want to know the subject, try to find the book called

Exchange Rate Determination and Control, by Giorgio Radaelli .​

This would give you an understanding.

I do have paid subscription to the resources, But I assume you would be able to find a copy from somewhere in the internet.

Ok machan to be honest, I am too lazy to read books specially when they aren't related to my field (which is IT). So what I am really looking for is a dumb down explanation on how this happens.

Also what is the relationship between the assets/dollars we have and the exchange rate?

 

[pradeepsu]

Ok machan to be honest, I am too lazy to read books specially when they aren't related to my field (which is IT). So what I am really looking for is a dumb down explanation on how this happens.

Also what is the relationship between the assets/dollars we have and the exchange rate?

Good Luck !

 

[HmNRazor]

Bump up

 

[2osama]

it's totally depends on demand