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There are also many more countries whose currencies are fixed to the US Dollar, meaning that they can use US Dollars in everyday transactions and on the exchange. How do we set our exchange rates: For each foreign currency purchase where we set the exchange rate, the exchange rate we use is a retail exchange rate, except for purchases and sales between banks and other large financial institutions in the interbank wholesale market where an interbank exchange rate is used. The USD is known for its stability, liquidity, and widespread use in global transactions.
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