Virtual currency linked to us dollar
almost all currencies in the world have a conversion rate to the US dollar, and the exchange rates between the two non US dollar currencies are calculated by their respective conversion rates to the US dollar. So it can be said that all currencies are pegged to the US dollar
as for whether the specific exchange rate policy is closely linked to the US dollar, several major currencies, free floating or managed floating, it depends on the policies of each country
Hong Kong dollar, Japanese yen and euro are all linked
In the era of gold standard, countries determine their exchange rate by the gold content of their currencies, which is called pegging to gold. The link between the currency and gold is based on the free circulation of gold. During the first World War, the Warring States terminated gold exports one after another, and their currencies devalued sharply. They could no longer exchange gold at a fixed rate. At this time, the currency was actually decoupled from gold< According to the Bretton Woods Agreement of 1944, the currencies of member countries of the International Monetary Fund should be exchanged with gold or US dollar at a fixed exchange rate, that is, linked to gold or US dollar. This agreement established the international monetary status of the US dollar, and the monetary system of various countries established by this agreement is called the Bretton Woods system. In August 1971, the US dollar stopped its free exchange with gold, and the Bretton Woods system collapsed. Then the currencies of various countries no longer exchanged for us dollar at a fixed exchange rate, that is, they were decoupled from the US dollar
exchange rate linkage means that when the main foreign exchange rates rise or fall, the exchange rate of the domestic currency rises or falls together
A: d the exchange rate of the local currency goes down and exports decrease
the exchange rate is the conversion ratio between the foreign currency and the local currency, so it seems that there is no reference to "the exchange rate of the local currency"
exchange rate is also called "foreign exchange market or exchange rate". The ratio of one country's currency to another country's currency is the price of another currency expressed in one currency. Due to the different names and values of currencies in the world, the exchange rate of one country's currency to that of other countries should be set< There are two pricing methods for foreign exchange rate:
(1) the direct quotation method (refer to "PAYABLE quotation method"), also known as the price quotation method, refers to the foreign currency with a certain unit (11001000, etc.) as the standard, (2) indirect quotation (referred to as "A / R quotation") is also known as quantitative quotation, which refers to the calculation of how many units of foreign currency are converted into a certain unit (11001000, etc.) of domestic currency. Under the gold standard system, the basis for determining the exchange rate is the golel point, Under the condition of paper currency circulation, the basis of its decision is purchasing power parity (PPP). It must be noted that with the development of foreign exchange globalization, the traditional direct pricing method and indirect pricing method used in various countries have been difficult to meet the needs of the development of international foreign exchange, and a unified way of exchange rate expression is needed. As a result, there is an international major currency or key currency as the standard way of pricing. At present. The foreign exchange rates published in foreign exchange markets of various countries are all based on US dollars. The exchange rate between the two currencies other than the US dollar must be calculated through the comparison between the respective currencies and the US dollar. This pricing method is called "dollar pricing method"