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This paper also includes an in depth analysis of how the foreign exchange could affect and gets affected by the economy, the society and politics.
OVERVIEW
The Philippine exchanged rate is express in terms of one unit of dollar versus one unit of peso. There are two cases on how an exchanged rate would be determined the first system is the free floating exchange rate where the supply and demand force of the market is the index and the other system is the fixed exchange rate given directly by Bangko Sentral ng Pilipinas. The free floating exchange rate would be given more consideration since it's the system that mostly affect our economy and being supported by BSP adopted since 1970...
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