On June 5438+0983+1 October 15, the China Hong Kong government announced a new policy to stabilize the exchange rate of the Hong Kong dollar, linking the Hong Kong dollar to the US dollar, with a fixed exchange rate of HK$ 7.801US dollar, which has been maintained ever since.
Fixed exchange rate means that the government sets the price of its own currency against other countries' currencies, and the fluctuation of the exchange rate between the two countries is limited to a certain range.
Under the gold standard, the currency exchange between the two countries is based on the gold content of their respective currencies, and the parity of coins is the standard of their exchange rates. At this time, the fluctuation of exchange rate is constrained by Goldpoints, which is a typical fixed exchange rate system.
Refers to the exchange rate between one country's currency and another country's currency is basically fixed. The fixed exchange rate is not completely fixed, but fluctuates around a relatively fixed parity. The highest point of this range is called "upper limit" and the lowest point is called "lower limit".
When the exchange rate rises or falls to the upper or lower limit, the central bank of the government should take measures to keep the exchange rate unchanged.
/kloc-The gold standard period from the early 9th century to the 1930s, and the international monetary system centered on the US dollar from the end of World War II to the early 1970s, implemented a fixed exchange rate system.
superiority
(1) is conducive to stable economic development.
(2) Economic entities that are conducive to international trade, international credit and international investment calculate costs and profits, thus avoiding the risk of exchange rate fluctuations.
disadvantaged
(1) exchange rate can hardly play an economic leverage role in adjusting the balance of payments.
(2) Maintaining a fixed exchange rate system will destroy the internal economic balance. For example, when a country has a balance of payments deficit, the local currency exchange rate will fall and become a soft currency. In order not to devalue the local currency, we must adopt a tight monetary policy or fiscal policy, but this will inhibit domestic economic growth and increase unemployment.
(3) Causing turbulence and chaos in the international exchange rate system. The currency and financial crisis in Southeast Asia is an example.
Fixed exchange rate is the symmetry of floating exchange rate, which is a common exchange rate system under the gold standard and Bretton Woods system. This system stipulates that a fixed ratio should be maintained between the domestic currency and the currencies of other countries, exchange rate fluctuations can only be limited to a certain range, and official intervention can ensure the stability of the exchange rate.
According to the Bretton Woods Agreement, IMF member countries must confirm that US$ 35 set in 1934 is equivalent to the official price of 1 ounce of gold.
The U.S. government undertakes the obligation of all countries to exchange dollars for gold in the United States at this price.
When the official price of gold is impacted by speculators in the international financial market, governments should cooperate with the US government to intervene.
Under the Bretton Woods system, the currencies of IMF member countries must maintain a fixed exchange rate with the US dollar.
According to the official price of gold mentioned above, the US government stipulates that the gold content of 1 US dollar is 0.88867 1 gram of pure gold, and the exchange rate of member currencies against the US dollar is fixed according to the gold content of national currencies, or directly fixed, but it cannot be easily changed.
The fluctuation range of exchange rate should be kept within 1% of the fixed price. Any change in the gold content of currency exceeding 1% must be approved by the International Monetary Fund.