A system where a country will have both fixed
and floating foreign exchange rates
at the same
time, and both can be used when exchanging currencies
in that country. In this situation, the market
is divided into any number
, each with its own exchange rate. This is frequently used to give preferential
treatment to people dealing
that are the most important to the country; people importing
these goods can be given a better exchange rate than people who are importing goods that are not as necessary for the country.
If a country only imposes
two different exchange rates
at the same time, it is referred to as a dual exchange rate system.