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In some areas of Europe and in the retail market in the United Kingdom, EUR and GBP are reversed so that GBP is quoted as the fixed currency to the euro.

In order to determine which is the fixed currency when neither currency is on the above list (i.e.

To determine the forecasting efficiency, they perform a comparative statistical out-of-sample analysis of the tested model with autoregressive models and the standard neural network.

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The real exchange rate (RER) is the purchasing power of a currency relative to another at current exchange rates and prices.The firm is likely to be paid or have profits in a different currency and will want to exchange it for its home currency.

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