Exchange rates

Question 1

Examples of fixed exchange rate systems

Answer 1

Pegged to US Dollar
Hong Kong
Saudi Arabia
UAE

🇸🇦 Saudi Riyal (SAR) – Pegged to the US Dollar at 3.75 SAR/USD since 1986.

🇭🇰 Hong Kong Dollar (HKD) – Pegged to the USD in a tight range of 7.75–7.85 HKD/USD.

🇧🇭 Bahraini Dinar (BHD) – Pegged to USD at approximately 0.376 BHD/USD.

Question 2

Examples of managed floating exchange rate systems

Answer 2

India
Brazil
South Korea

🇮🇳 Indian Rupee (INR) – RBI intervenes occasionally to curb volatility.

🇷🇺 Russian Rouble (RUB) – Subject to heavy managed floating, especially during geopolitical instability.

🇨🇳 Chinese Yuan (CNY) – China lets the currency float within a narrow band, with daily central bank guidance.

Question 3

Examples of free floating exchange rate systems

Answer 3

USA
UK
Australia

🇺🇸 US Dollar (USD)

🇬🇧 British Pound (GBP)

🇯🇵 Japanese Yen (JPY)

🇨🇦 Canadian Dollar (CAD)