difference between Fixed Exchange Rates and Floating Exchange Rates

 

fixed exchange rate	floating exchange rate
An exchange rate regime where the value of a currency is fixed, or pegged, to the value of another currency, or to the average value of a selection of currencies, or to the value of some other commodity such as gold	An exchange rate regime where the value of a currency is allowed to be determined solely by the demand for, and the supply of, the currency on the foreign exchange market
Fixed exchange rate is the rate which is officially fixed in terms of gold or any other currency by the government.	flexible exchange rate is the rate which, like price of a commodity, is determined by forces of demand and supply in the foreign exchange market.
It does not change with change in demand and supply of foreign currency	It changes according to change in demand and supply of foreign currency.
government intervention.	There is no government intervention.