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4 February, 03:12

If a country on a fixed exchange rate regime finds its currency falling:

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  1. 4 February, 03:19
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    If a country on a fixed exchange rate regime finds its currency falling it can use foreign exchange reserves to purchase some of its own currency. Foreign exchange reserves are also know as forex reserves or RX reserves. The foreign exchange reserves are money or other assets that are being held by a central bank or another organization authorized to hold funds. This money is held in case it needs to pay liabilities off and other debt they have accrued.
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