Naa Anubhavam Part (13 to 21) - Atta Puku Dengudu

An overnight indexed swap (OIS) is an interest rate swap where the periodic floating rate of the swap is equal to the geometric average of an overnight index (i.e., a published interest rate) over every day of the payment period. The index is typically an interest rate considered less risky than the corresponding interbank rate.The IMF could permit countries to adjust their currency's price under fairly stringent guidelines. In 1971 it became obvious that the US$ could no longer remain pegged to gold so the major trading countries started to adopt a free market valuation of their currencies. Any global pegging was completely abandoned in 1985 and individual countries have to decide on the best way to control their liquidity and their trade by adopting the forex fixing regime that they consider works best for them.Unfortunately forex fixing by individual countries is not sustainable in the long term. There are quite a few recent examples of countries suffering serious financial crisis because they have fixed their currencies high for too long. (e.g. Mexico, Russia and parts of Asia).