Why is it important to understand fixed exchange rates in the modern g

Why is it important to understand fixed exchange rates in the modern global economy?

What will be an ideal response?

ANSWER

Fixed rates continue to be important for four reasons:
1. Managed floating: Central banks intervene in foreign exchange markets.
2. Regional currency arrangements: Some countries peg their currency to another currency.
3. Developing countries and countries in transition: These countries often attempt to peg their currency to another currency.
4. Lessons of the past: Fixed exchange rates could have a resurgence.