GCU multi-currency Trade-Weighted Equlibrium Exchange Rates

The GCU has developed the multi-currency Trade-Weighted Equilibrium Exchange Rate System, which is an innovative solution to enabling more stable, market-determined rates for most countries' currencies relative to volumes of trade with its trade partners and their currencies’ values. The result is an exchange rate regime that reduces the National Volatility Figure (NVF) to a minimum.

The GCU Trade-Weighted Equilibrium Exchange Rate System is a self-balancing market-determined system which ensures adjustment to ongoing changes in both currency values and trade patterns, and so thereby ensures optimal stability for the country that employs it without requiring the sort of interventions demanded by a pegged or managed exchange rate regime.

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