Pegged exchange rate

Pegged exchange rate
Exchange rate whose value is pegged to another currency's value or to a unit of account.
Penalty clause ...

Pegged Exchange Rate System - The International Monetary Fund's name for a fixed exchange rate system.

The central value of a pegged exchange rate, around which the actual rate is permitted to fluctuate within set bounds.
Paradox ...

In 2009, monetary policy remained geared toward maintaining low and stable inflation, in the context of the pegged exchange rate. The central bank lowered its benchmark interest rate by a quarter of a percentage point to 3.

The Bretton Woods exchange rate system had a system of pegged exchange rates with currencies pegged to the dollar. The currencies were only to be revalued in the event of fundamental disequilibrium. The system ended in 1971 ...

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CFA Level 1 - Fixed vs. Pegged Exchange Rate Systems ...

pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, followed by new debt, and debt-equity hybrids. Finally, new equity is at the least preferred source.
Pegged exchange rate ...

See also: Equilibrium, Banks, Values, Intervention, Perfect competition