Exchange rate mechanism of the foreign exchange market
The band provides a mechanism to accommodate short-term fluctuations in the foreign exchange markets and flexibility in managing the exchange rate. Third 1.5 Intervention under the ECOWAS Exchange Rate Mechanism (EERM) which it can then sell on foreign exchange markets to buy its own currency until. Basis of Exchange Rate quotation: a) BUYING:- Rate at which Foreign Currency bought from customer can be sold in the market i.e., market buying rate b)