Some countries with fixed exchange rates have attempted to overvalue their currencies that is, they have tried to keep the exchange rate above the market rate a How can a country overvalue its currency b Why would a country want to maintain an overvalued currency c Why is it difficult to maintain a...

a A country can overvalue its currency by purchasing its own currency in foreign exchan ...

Some countries with fixed exchange rates have attempted to overvalue their currencies; that is, they have tried

Question:

Some countries with fixed exchange rates have attempted to overvalue their currencies; that is, they have tried to keep the above the market rate.
a. How can a country overvalue its currency?
b. Why would a country want to maintain an overvalued currency?
c. Why is it difficult to maintain an overvalued currency for a long period of time? Briefly explain. Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...