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What is the effective exchange rate

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The Republic of Argent does 50% of its trade with Eurasia and 50% with Oceania. Over the last three years, the currency has risen from 1 to 1.1 and then to 1.3 against the Oceania dollar. However, against the Eurasian euro it has fallen from 1 to 1/1.1 to 1/1.3. What is the effective exchange rate? If the Republic wishes to ?x its exchange rate, what ex- change rate regime would you recommend?

Reference no: EM13888029

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