Fixed exchange rate

固定相場／ fixed exchange rate　—　Institutions

A system that keeps the exchange rate at a fixed level. A form of anchor.

Mexico　The Twenty-Two Years of 12.50 ／ Mexico City

A system that maintains a fixed exchange ratio between the domestic currency and a foreign currency (or gold). While it functions as a price anchor, it requires reserves and determination to defend.

⚠ A fixed exchange rate is a promise "not to move it," not a fact that "it does not move." The timeline of monetary history is a list of broken promises.