What does it mean for a country's economy to shift from fixed to floating exchange rate?

marcusfe

Active member
I'm directing this question to the economic experts in the house and I want as my as possible who are well informed about economic and financial to give their point of view as well. I've heard several times when some economic analysis were advising the central bank of Nigeria sometimes ago to float the the Nigerian currency. Some were suggesting it should be kept fixed and each of these advisors gave their analysis what would it's impact on the economy of the nation and the citizens as well.
I know that whether the currency of a nation is kept fixed or left to float will have serious impact on the economy and the citizens. The I don't really understand these terms of fixing or floating the economy. Let the economic experts in the house do justice to this.
 

Alexandoy

VIP Contributor
The shift to floating rate from the fixed rate or vice versa would be the dictates to the central bank of the government’s finance secretary or minister. We used to be on floating rate when I was in college but after 10 years the exchange rate because fixed. Now we are in a kind of floating rate again but fortunately the exchange rate or our currency to the US dollar is very stable.
I'm directing this question to the economic experts in the house and I want as my as possible who are well informed about economic and financial to give their point of view as well. I've heard several times when some economic analysis were advising the central bank of Nigeria sometimes ago to float the the Nigerian currency. Some were suggesting it should be kept fixed and each of these advisors gave their analysis what would it's impact on the economy of the nation and the citizens as well.
I know that whether the currency of a nation is kept fixed or left to float will have serious impact on the economy and the citizens. The I don't really understand these terms of fixing or floating the economy. Let the economic experts in the house do justice to this.
 

sincerem

VIP Contributor
When the country's finance is fixed then it means the economy is balance and stagnated to a certain amount. When it afloat meaning it fluctuates up and down not stable. It depends on the economic benefits and resources of the country. If the ways of generating funds is large the country's economic value pumps up.
 
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