Fixing refers to the daily monetary exchange rate determined by the national bank of each country. The fixing time and exchange rate are used by central banks to assess the currency's performance. The exchange rate reflects the market's real value of equilibrium. Banks, dealers, and traders use fixing rates as indicators of market trends.

The expectation or rumour of central bank intervention in foreign exchange markets could stabilize the currency. There may be several times a year when aggressive intervention is used in countries with a dirty floating currency regime. Central banks aren't always successful in achieving their goals. Any central bank can easily be overwhelmed by the aggregated resources of the market. In 1992–93, after the collapse of the European Exchange Rate Mechanism, similar events took place in Asia.

Foreign exchange fixing is a process used to determine the daily exchange rate for currencies. This rate is set at a specific time of day and serves as a benchmark for traders, financial institutions, and businesses. Central banks, financial regulators, or designated committees typically oversee the fixing process to ensure fairness and transparency. The most well-known fixing rates include the London 4 p.m. fix and the WM/Reuters benchmark. These rates are crucial for currency conversion, financial contracts, and global trade. By providing a standard reference, foreign exchange fixing helps stabilize the market, reduce volatility, and increase confidence among market participants.