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Foreign-currency borrowing, 95% of it in Swiss francs, accounts for over two-thirds of total lending.The government in Budapest is offering to take on the burden for three years by fixing an exchange rate at which some households can pay mortgage interest.
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Any attempt to fix a new exchange rate would probably come under immediate attack on currency markets, while a float would initially lead to an uncontrolled depreciation of the new money.
A company getting paid in lira for delivering widgets to an Italian merchant might use derivatives to fix a dollar/lira exchange rate until paid.
He once got a massage in exchange for fixing a garage door.
Mr. Mullins, in claiming that the ticket-fixing did not qualify as corruption, said he had never heard of an officer's taking a bribe in exchange for fixing a ticket.
And on Thursday, the central bank fixed a key daily exchange rate for the currency at a record high of 6.6242 to the dollar.
Up until last week it was mostly taken for granted that a currency board fixed a country's exchange rate as permanently as one could wish.
Ms. Van Rompeay said that in Belgium at least, the price-fixing allegations center on an agreement among commercial banks and the national central bank to fix an upper limit for currency exchange fees.
Therefore, whether fixing the exchange rate involves a welfare cost depends critically upon the way in which monetary rules are designed.
It may be worthwhile fixing the exchange rate by speaking to a foreign exchange specialist.
A central question addressed is whether fixing the exchange rate prevents macroeconomic adjustment in relative prices from occurring.
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