Question

1. What is the currency regime of Canada, referring to the 4 categories and 10 classifications of IMF? Please indicate the source of information. What is the immediate past currency system?
2. Please describe the definition and requirement of this regime, particularly what determines the rate and its change, and the responsibility of the country authorities.

Answer 1

Currency regime of Canada is of a floating exchange method, An exchange regime is the method, policy makers of a nation use to manage it's currency relations to other currencies and foreign exchange markets. The major categories in currency regime are (fixed exchange rate, floating exchange rate, free float, managed floating)
Fixed exchange rate refers to fluctuate in a wider range,where authorities implement no policies to fix the change, may be appreciation or depreciation.
Floating exchange rate refers to the control of economy on the movement of exchange rate.
Free floating refers to currency value is allowed to change in response to foreign market change.
Managed floating refers to the change in exchange rate towards the economic development of the country.
Past currency system refers to the change in currency, like barter system where buy and sell of products or services were done using the products or services they have, sooner the system changed to the concept of money where products or services were given in accordance with the money. But now a days the exchange is done virtually,no money is physically present for the transaction.the currency system has be completely changed.
Regime can be considered as the system to manage the economy, regime is a kind of governing factors to manage a system, in currency exchange, there are some regime should be followed to carry out the currency functions of a nation, it is very much important for the economic growth of a country.
The regime of currency decides the rate and the change, the authorities only impliments the monetary policy required to manage the exchange rates. In some types of regime the the change acts its own due to some external factors such as foreign market changes.