flexible exchange rate


An exchange rate which fluctuates depending on the supply and demand of a currency in relation to other currencies. If there is a high demand for a particular currency, its exchange rate relative to other currencies increases, on the other hand, if there is less demand, its value decreases. Opposite of fixed exchange rate.

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You need to make sure that you are shopping around for the best price any time you deal with a flexible exchange rate.

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The fluctuation of the flexible exchange rate meant that I left the country with far more money in my home currency than I expected to have.

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The flexible exchange rate between the yen and the dollar made it difficult to pin down the actual differences in value between the two currencies.

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flexible exchange option (FLEX) flexible expense