There are three main types of exchange rate systems: floating exchange rates, fixed exchange rates, and managed floating exchange rates. Floating exchange rates fluctuate based on supply and demand in financial markets, while fixed rates are pegged to a value but may be devalued. Managed floating rates involve a central bank intervening in free markets to influence the exchange rate and keep it near a fixed price. Appreciation and depreciation refer to unpredictable increases or decreases in a currency's value, while devaluation and revaluation are government-planned decreases or increases under a fixed exchange rate system. Exchange rates are influenced by economic, political, and psychological market factors.

1. 1

2.  Floating Exchange Rate
 Fixed Exchange Rate
 Managed-Floating Exchange Rate

3.  A currency is free-floating if its exchange rate is
allowed to vary against that of other currencies
 Determined by the market forces of supply and
demand
 Exchange rates for such currencies are likely to
change almost constantly as quoted on financial
markets, mainly by banks, around the world

4.  A movable or adjustable peg system is a system
of fixed exchange rates
 With a provision for the devaluation of a currency
 e. g. Chinese Yuan renminbi (RMB) was pegged
to the United States dollar at RMB 8.2768 to
$1from 1994 to 2005

5.  An exchange rate system which is based on the
free float but with the intervention of the Central
Bank.
 Central bank keep the rate at a fixed price by
using its different tools and methods

6.  Appreciation of Currency means increasing the
value of currency in terms of others international
currencies based on demand and supply.
 Depreciation of currency means reduction in the
value of currency in terms of other international
currencies based on demand and supply.

7.  Devaluation of currency means the planed
reduction in the value of currency by the Govt.
based on the fixed exchange rate.
 Revaluation of currency means the planed
increase in the value of currency by the Govt.
based on fixed exchange rate.

9.  1 Economic factor
 2 Political factors
 3 Market psychologies

10.  Monetary policies of the central bank
 Health of an economy
 Trade policies
 Currency inflation and deflation
 The Balance of Payments
 The Law and Order situation

11.  The Political Stability
 The Market Trends
 The Relative Inflation Rates
 The Relative Interests Rates
 The amount of Investments in the country
 The Foreign remittances

12. Thanks