Float or fix?

This refers to the editorial, ‘Spiralling currency’ (June 27). The silence of the concerned authorities on this crisis situation is adding fuel to the fire. The floating currency does not need high reserves of foreign currency but it increases day to day uncertainty. Besides that, it is highly volatile and entails more exchange rate risks.Each country makes its own decision to enter the market with a floating or fixed rate. It is debatable if the economic models of a free market can work in a situation of a parallel economy where hoarding of foreign currency is a norm.Dr Najeeb A KhanBostonUSA

from The News International - Newspost https://ift.tt/2X3OAwB