Fund parity refers to national currency parity set by the Member States of the International Fund (IMF) and reported to the Fund.
Parity is expressed in gold or.
Governments must keep their currencies within 1% of the dollar and are not obliged to maintain gold parity.
While the fund moves by 1%, some countries’ currencies move by less than 1%.
For example, the currency parity of the signatories to the European Monetary Agreement fluctuates by 0.75 per cent and 0.7 per cent, respectively.
Usually, banks buy and sell at par and charge a 0.25 percent fee.
The official parity of the dollar against gold, for example, is $35 an ounce.
In the process of buying and selling, the price of an ounce of gold was 35.0875 dollars, or 34.9125 dollars, with a fee of 0.0875 dollars added.
