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Fixed exchange rates are more likely to let the pressure build up. When market forces overwhelm them in the end, it causes huge swings in exchange rates. This is true in particular for emerging market currencies. Flexible exchange rates will make them more important global economic players. The "BRIC" countries Brazil, Russia, India, and China seemed impervious to the recession until recent times, so forex traders became more involved in their currencies. In 2013, some of these countries started to falter, leading to an exodus and fast depreciation of their currencies.
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This is by no means investment advice.
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Using forward contracts to lock in forward rates is also a useful forex trading tool, allowing a business to accurately predict its cash inflows and outflows, by locking in exchange rates for a future point in time.
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