The formation of the exchange rate based on market mechanisms plays a crucial role in ensuring economic stability and efficiency. This study examines the key factors influencing exchange rate determination in a market-driven environment, highlighting the impact of supply and demand dynamics, monetary policy, and external economic conditions. The findings emphasize that a well-functioning market-based exchange rate system enhances trade competitiveness, attracts foreign investment, and contributes to overall macroeconomic stability. The research provides insights into optimizing exchange rate policies to support sustainable economic growth.

Foreign exchange rate, floating exchange regime, soft peg regime

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