What flexible exchange rate means
For example, an inter-bank exchange rate of 91 Japanese yen (JPY, ¥) to the United States dollar (USD, US$) means that ¥91 will be exchanged for Floating exchange rates automatically adjust to trade imbalances while fixed rates do not. debates of the relative merits of fixed versus flexible exchange rates developed new life and the original Bretton Woods system was replaced by a system of floating exchange rates among the Other currencies were defined in terms of.