What is the exchange rate regime

System, also known as exchange rate arrangement, refers to the systematic provisions made by countries or the international community on the principles, methods, ways and institutions for determining, maintaining, adjusting and managing exchange rates.

Traditionally, exchange rate regimes are divided into regime and floating rate regimes according to the extent of exchange rate fluctuations.

Before the 1970s, Western countries had fixed exchange rates.

Later, due to the crisis and collapse, countries began to adopt floating exchange rate system.

The classification of exchange rate system is the basis of studying the advantages and disadvantages of exchange rate system and the choice of exchange rate system.