A floating exchange rate, also known as a flexible exchange rate, is a type of exchange rate regime in which the value of a country’s currency is determined by the foreign exchange market based on supply and demand. In other words, the exchange rate is allowed to fluctuate freely and is not pegged to the […]
The fixed exchange rate system is a monetary system in which the value of a country’s currency is fixed or pegged to the value of another currency, a basket of currencies, or a commodity such as gold. Under this system, the exchange rate between the domestic currency and the foreign currency remains constant and is […]
A fixed exchange rate is a monetary system in which the value of a country’s currency is fixed or pegged to the value of another currency, a basket of currencies, or a commodity such as gold. Under a fixed exchange rate regime, the government or central bank of a country actively intervenes in the foreign […]
The FIMA (Foreign and International Monetary Authorities) Repo Facility is a program established by the Federal Reserve Bank of New York that allows foreign central banks and international monetary authorities to manage their foreign currency reserves through repurchase agreement (repo) transactions in U.S. dollars. A repo transaction involves the temporary sale of an asset […]
The Federal Funds Rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to each other overnight, on an uncollateralized basis. In simpler terms, it is the interest rate that banks charge each other for short-term loans to meet their reserve requirements. The Federal Funds Rate is set […]
The term “Fed Put” refers to the ability of the Federal Reserve (Fed) to intervene in the markets during economic crises. It implies that the Fed will take action, such as lowering interest rates or implementing other monetary expansion measures, to support financial markets. The Fed Put is often associated with the expectation that […]
The Federal Reserve Interest Rate Decision, also known as the Fed Interest Rate Decision, refers to the decision made by the Federal Reserve, the central bank of the United States, regarding the setting of interest rates. These decisions are made by the policymakers of the Federal Reserve based on economic conditions and the goals of […]
Fed Fund Futures are financial derivatives used to predict and price the future movements of the Federal Reserve (Fed) funds rate. These futures contracts give investors an idea of the future levels of interest rates set by the Federal Reserve and allow them to manage their risks accordingly. Fed Fund Futures contracts represent the […]
The Federal Reserve System, often referred to as the Fed, is the central banking system of the United States. It was established in 1913 with the enactment of the Federal Reserve Act in response to financial panics and banking crises that occurred in the late 19th and early 20th centuries. Here are some key […]
The European Stability Mechanism (ESM) is an intergovernmental organization established by euro area member states to provide financial assistance and support to countries facing severe financial difficulties. Here are some key details about the ESM: Establishment: The ESM was established in 2012 as a permanent crisis resolution mechanism for the euro area. It replaced […]
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