subject :international finance

Scenario

The price of one currency in terms of another is called an exchange rate. At 4 p.m. London time on January 19, 2017, you would have needed 1.0612 dollars to buy one unit of the European currency, the euro, so the dollars exchange rate against the euro was $1.0612 per euro. Because of their strong influence on the current account and other macroeconomic variables, exchange rates are among the most important prices in an open economy. Because an exchange rate, the price of one countrys money in terms of anothers, is also an asset price, the principles governing the behaviour of other asset prices also govern the behaviour of exchange rates. Just as the price of Google stock rises immediately upon favourable news about Googles prospects, so do exchange rates respond immediately to any news concerning future currency values.

Basically, there are three types of exchange rates regime (Fixed exchange rate, Floating Exchange Rate, Pegged Exchange Rate)

required :

Identify the major participants of the exchange rate regime that engage in the international financial system