The way to determine the parity mainly includes: 1. Through a cooperative arrangement to determine the parity, such countries are mainly members of the European Community.
The MEMBER STATES OF the COMMUNITY implement the snake floating, that is, the member states determine the parity of their currencies among each other, forming a parity network, so that the parity of foreign exchange check each other to maintain stability, and the external implementation of joint floating.
2. Implement a pegging system, that is, determine the foreign exchange parity of the domestic currency and Special Drawing Rights, and use this to determine the parity of the domestic currency with other currencies.
3. Peg to some freely convertible currency parity.
4. It is not pegged to, or tied to, a currency, but adjusts foreign exchange parity according to changes in a series of indices.
