Economics Does Not Lend Itself to Consensus Building Mutual Fund Managers Who Rely on Market Timing

Multiple Exchange Rates

It is not too uncommon for countries to have multiple exchange rates. In these cases, a country may opt to have both a floating exchange rate and a fixed exchange rate. Forex traders are usually still subject to the floating rates though because fixed rates are usually more for imports/exports of a country. Fixed exchange rates could be more or less favorable than a floating rate, and depending on which "segment" the rates apply to. This is important for forex trader to know because it is another monetary policy that can be imposed by a government.