Rate of custom

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Yogesh Parte (Querist)
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31 May 2012 IF CUSTOM RATE IS FIXED FOR THE PARTICULAR MONTH THEN CUSTOM RATE CAN BE DIFFERENT FOR THE A PARTICULAR MONTH? IF YES THEN WHY?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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31 May 2012 govt of India , ministry of revenue, Monthly issue the exchange rate and fluctuation.

A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency.

There are economists who think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates. As floating exchange rates automatically adjust, they enable a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.

However, in certain situations, fixed exchange rates may be preferable for their greater stability and certainty. This may not necessarily be true, considering the results of countries that attempt to keep the prices of their currency "strong" or "high" relative to others, such as the UK or the Southeast Asia countries before the Asian currency crisis.

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