Title:
A New Dynamic Framework for Exchange Rate Determination: The Currency Four-force Push–Pull Model

Authors:
Lie Chun Pong, China

Abstract:

Nowadays, most advanced economies use managed float system, such regimes, are neither fully floating nor strictly fixed. This paper will examine why this hybrid systems remain susceptible to recurrent currency crises, in addition, we propose a new conceptual framework to better explain currency dynamics. Specifically, this research pursues two main objectives. First, it analyses contemporary currency systems from the perspectives of G7, central banks, hedge funds, and ordinary citizens, with a focus on their strategies and decision-making processes. Second, we purpose an innovative "Currency Four Force" model, where these Four domain market force will primarily determine currency values. Third, this research paper will make use to capture selected aspects of currency behaviour and to support our innovative "Currency Four Force” theory.

                                              DOI: https://doi.org/10.51505/IJEBMR.2026.1106