That level is the exchange rate ceiling or floor.
Floor exchange rate.
A floor in finance may refer to several things including the lowest acceptable limit the lowest guaranteed limit or the physical space where trading occurs.
An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price an example of a cap would be an agreement to receive a payment for each month the libor rate exceeds 2 5.
An interest rate floor is an agreed upon rate in the lower range of rates associated with a floating rate loan product.
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A government or central bank might decide that it is not willing to let its currency gain or lose value beyond a certain level.
He is a floor trader floor exchange a workplace for buying and selling.
They are most frequently taken out for periods of between 2 and 5 years although this can vary considerably.
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One sided exchange rate floor at a depreciated level of 27 czech koruna czk to the euro to fulfill the inflation target affecting the overall price level through higher import prices and inflation expectations.
Opening and maintenance of securities account clearing and settlement of payment transactions.
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