Cryptocurrency Q&A
Is a pegged exchange rate fixed?
Is a pegged exchange rate fixed?
Elena
Fri Apr 25 2025
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I'm trying to understand pegged exchange rates. Specifically, I want to know if a pegged exchange rate is considered fixed or if it can fluctuate within certain limits. Can someone clarify this for me?
7 answers
mia_rose_painter
Sun Apr 27 2025
In this system, the value of a country's currency is set and maintained at a fixed level against another currency.
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Sofia
Sun Apr 27 2025
This fixed level is usually determined by the country's monetary authority.
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Starlight
Sun Apr 27 2025
Alternatively, a currency's value can be pegged against a basket of other currencies, reflecting the country's trading relationships with multiple nations.
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AmyDavis
Sun Apr 27 2025
In some cases, a currency's value might be pegged to a commodity, such as gold or silver, which historically have served as stores of value.
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Nicola
Sun Apr 27 2025
A fixed exchange rate system, also known as a pegged exchange rate, is a monetary policy framework adopted by some countries.
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