A floating exchange rate is a monetary system in which the value of a country’s currency is mainly determined by market forces. In this system, the price of a currency changes according to supply and demand in the foreign exchange market. When more people, companies, banks, or investors want to buy a currency, its value may increase. When demand for the currency falls, its value may decrease. Unlike a fixed exchange rate system, where the government or central bank tries to k

The Nixon Shock of 1971 is one of the most important turning points in modern economic history. It marked the end of the direct convertibility of the United States dollar into gold and opened the way for a more flexible global financial system. Before this event, the international monetary order was shaped by the Bretton Woods system, in which currencies were linked to the U.S. dollar, and the dollar was linked to gold. This arrangement created a framework of stability after