Bro understand the Foreign Currency Policies/Regimes
1: Freely Fluctuating Exchange Rate, i.e the currency exchange rate is allowed to float (to move up and down).
2: Managed floating rate system, i.e allowed to float in response to supply and demand, but with limited degree of freedom to move up and down.
3: Fixed Rate System as the name ascribed, the government maintain target exchange rate through its fiscal agencies or authorities (central bank or treasury agencies) operations and economic policies.
4: Controlled Rate Regime, in this system, the national government directly affect exchange rates by imposing and enforcing legal controls on private dealings in FOREX.
5: Pegged Currency, in this regime, the home currency is linked to a major trading currency (vehicle currency) or a basket of currencies (currency blocs) and keep that relationship fixed. Many countries linked the value of their currencies to the US$ (the vehicle currency).
Now tell me how these relates with the economy of the country rather than discretionary.