IAS IPS upsc exchang rate?

what is the exchange rate
At the rate at which the currency of one country changes with the currency of another country, it rates the exchange. In most countries, the exchange rate is written up to 4 digits after the decimal, for example, on June 8, 2018, the value of $ 1 was 67.5228 rupees. The value of currency of the country depends on its demand and supply in the market as a general trader purchases the goods, similarly foreign exchange in the foreign exchange market The purchase price is the exchange rate, the exchange rate can be of two types: the support rate ie the exchange rate for today's foreign currency and the future rate ie future date.
 In fact, the exchange rate: there are two currency in the country currency and counter currency expressing it in two ways: the first method in which the country currency is from any other country, like the currency of rupee against the dollar, currency is rupee counter currency second The way in which the domestic currency is currency and foreign currency is the currency and the foreign exchange counter is the currency, in the global economy When expressing the exchange rate of most, the dollar is considered as a base currency
Faulting or Fixed: Exchange Rate Floating Latest Updates Updates Floating Exchange means that the value of currency is being fixed on the market, and there are fluctuations from time to time, in some countries the government decides exchange rate Which is a fixed exchange rate, for example, the currency currency of Saudi Arabia, whose government determines its value, the rial exchange rate is the currency exchange of any currency The rate is different from the nominal exchange rate in your newspaper. It will be read in the paper that the Chinese tax is kept. It means that the value of the youth is not as much as it should be. To understand that we take the help of Riyal exchange rate, it shows that the country What is the real value of the currency of the country, for example, the value of a dollar is 6.8 yuan, so let's say the nominal exchange rate of the Dow Yuan 1 / 6.8 i.e. 0.147 is a burger in China. The price is Youth, while in the US it is 5.30 dollars, in the same way in China, a burger price is 20 times 0.147 ie $ 2.94 a burger price in the US is $ 5.30, so the yuan and dollar exchange rate 2.94 / 5.3 that is 0.55 It came below the exchange rate of 1, that means the youth is around 45% value compared to the dollar. In the ideal situation, the real exchange rate should be one
 The impact of fluctuation in the exchange rate: Any country has an impact on the economy, for example, if the exchange rate is lower than the dollar, i.e. the price of rupees has fallen, then in the international market, Indian products will be cheaper and exporters They will get more rupees in exchange for the dollars they receive. The rest who are importer will pay more money to import any item have to do it