exchange rate stability

Exchange rate stability refers to the fluctuation of a country's currency value relative to other currencies remaining relatively constant over time. Stable exchange rates help businesses and travelers plan and make decisions without worrying about sudden changes that could affect costs and profits. Governments and central banks often work to maintain this stability through monetary policies, interventions, or agreements, to promote economic confidence, reduce uncertainty, and support international trade. When exchange rates are stable, it indicates a balanced economic environment, reducing the risks associated with currency volatility.