Nepal has a controlled or fixed currency exchange rate pegged to the Indian Rupee.

Furthermore, the U.S. Federal government had created a fixed currency pegged to the value of gold.

A floating currency is contrasted with a fixed currency.

At the same time, many fixed currencies (such as GBP, for example), also became free floating.

The idea was to help the country defend its fixed currency, which had become a political touchstone, while avoiding default on $132 billion in foreign debt, allowing it to continue good relations with foreign investors.

"We learned that the Chinese have come to a conclusion that a fixed currency is no good for China," Mr. Schumer said Tuesday.

Analysts warn that China risks creating domestic asset bubbles and infuriating the US, which has argued that China's growth is being powered by a low fixed currency.

In macro-economic terms, it emphasizes a fixed currency and autonomy over monetary policy over capital mobility.

In 1991 Finland fell into a depression caused by a combination of economic overheating, fixed currency, depressed Western, Soviet, and local markets.

The government had never before spent so much to prevent the yen from rising, and many currency traders and analysts now joke that the Japanese have a fixed currency, just like the Chinese.