Currency Peg

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Dictionary Says

Definition of 'Currency Peg'

A country's or government's exchange-rate policy of pegging the central bank's rate of exchange to another country's currency. Currency has sometimes also been pegged to the price of gold.

Also known as a "fixed exchange rate" or "pegged exchage rate".

Investopedia Says

Investopedia explains 'Currency Peg'

Currency pegs allow importers and exporters to know exactly what kind of exchange rate they can expect for their transactions, simplifying trade. This in turn helps to curb inflation and temper interest rates, thus allowing for increased trade.

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Search results for

'Currency Peg'

  • Why China's Currency Tangos With The USD

    http://www.investopedia.com/articles/forex/09/chinas-peg-to-the-dollar.asp
    ... China argues that the currency peg is meant to foster economic stability
    and abandoning the peg could result in an economic crisis. ...

  • America's Loss Is The Currency Market's Gain

    http://www.investopedia.com/articles/forex/09/smithsonian-agreement-1971.asp
    ... In this respect, the US had to fix its currency price so other nations
    would have a peg to the dollar and get access to credits. ...

  • Currency Exchange: Floating Rate Vs. Fixed Rate

    http://www.investopedia.com/articles/03/020603.asp
    ... seen in the Mexican (1995), Asian (1997) and Russian (1997) financial crises: an
    attempt to maintain a high value of the local currency to the peg resulted in ...

  • The Currency Board: Understanding The Government's Bank

    http://www.investopedia.com/articles/03/051503.asp
    ... that the currency board would no longer function in an orthodox manner and the currency
    board's willingness to defend the local currency's peg (as opposed to ...

  • The Pros And Cons Of A Pegged Exchange Rate

    http://www.investopedia.com/articles/forex/08/pegged-vs-floating-currencies.asp
    ... Ultimately, however, the currency peg is a policy measure that can be used
    by any nation and will always remain a viable option. ...

  • Profiting From A Weak US Dollar

    http://www.investopedia.com/articles/forex/08/weak-usd.asp
    ... goods that are unaffected by US dollar movements because these countries "peg" their
    currencies to ... in the US or by a country that links its currency to the US ...

  • Investopedia's Forex Outlook For May 2012: Swiss Economy ...

    http://www.investopedia.com/university/monthly-forex-report-may-2012/swiss-economy.asp
    ... during 2013. Still, some trade groups have been calling for the currency
    peg to be dropped to 1.30 euros. In particular, exporters ...

  • Investopedia's Forex Outlook For May 2012: Macroeconomic ...

    http://www.investopedia.com/university/monthly-forex-report-may-2012/
    ... Switzerland - Switzerland's economy has proven very resilient throughout the eurozone
    crisis, but its currency's peg to the euro is now being challenged. ...

  • Dollarization Explained

    http://www.investopedia.com/articles/04/082504.asp
    ... The Dollarization Alternative As an alternative to maintaining a floating currency
    or a peg, a country may decide to implement full dollarization. ...

  • Investopedia's Forex Outlook For May 2012: Macroeconomic ...

    http://www.investopedia.com/university/monthly-forex-report-may-2012/macroeconomic-highlights.asp
    ... Switzerland - Switzerland's economy has proven very resilient throughout the eurozone
    crisis, but its currency's peg to the euro is now being challenged. ...

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