Mean by fixed exchange rate
The following chart visualizes the difference between a fixed exchange rate, and an exchange rate that was once fixed and then became flexible. Why the Euro Is So Special Most exchange rates are given in terms of how much a dollar is worth in the foreign currency. Definition of a Fixed Exchange Rate: This occurs when the government seeks to keep the value of a currency fixed against another currency. e.g. the value of the Pound Sterling fixed against the Euro at £1 = €1.1. Semi-Fixed Exchange Rate. This occurs when the government seeks to keep the value of a currency between a band of the exchange rate.