Currency Peg

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".

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.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • currency peg — ˈcurrency ˌpeg noun [countable] FINANCE when a country directly relates the value of its currency to the value of another currency, usually the dollar: • Forecasters predict no change in Hong Kong s currency peg this year, but think that China… …   Financial and business terms

  • peg — [peg] verb pegged PTandPPX pegging PRESPARTX [transitive] FINANCE 1. to fix something such as prices or wages at a particular level, or fix them in relation to something else: peg something at something …   Financial and business terms

  • PEG — or Peg may refer to: Contents 1 See also Devices Clothes peg Tent peg Tuning peg, on a musical instrument Piton, in climbing Part of a flatland BMX bicycle Science, medicince and compu …   Wikipedia

  • Currency War of 2009–2011 — The Currency War of 2009–2011 is an episode of Competitive devaluation which became prominent in September 2009. Competitive devaluation involves states competing with each other to achieve a relatively low valuation for their own currency, so as …   Wikipedia

  • peg — I UK [peɡ] / US noun [countable] Word forms peg : singular peg plural pegs * 1) British a wooden or plastic object used for fastening wet clothes onto a line so that they will dry 2) an object fixed to a wall, door etc and used for hanging things …   English dictionary

  • Currency union — World trade A series on Trade …   Wikipedia

  • Currency Board — Le terme de Currency board se traduit en français par caisse d émission monétaire. La caisse d émission est un système particulier de gestion de l émission de la monnaie nationale. On utilise une caisse d émission lorsqu on veut disposer d une… …   Wikipédia en Français

  • Currency board — Le terme de Currency board se traduit en français par caisse d émission monétaire. La caisse d émission est un système particulier de gestion de l émission de la monnaie nationale. On utilise une caisse d émission lorsqu on veut disposer d une… …   Wikipédia en Français

  • peg — /peg/ verb to maintain or fix something at a specific level ♦ to peg a currency to fix an exchange rate for a currency which previously was floating ♦ to peg prices to fix prices to stop them rising ♦ to peg wage increases to the cost of living… …   Dictionary of banking and finance

  • Currency strength — expresses the value of currency. For economists, it is often calculated as purchasing power,[1] while for financial traders, it can be described as an indicator, reflecting many factors related to the currency; for example, fundamental data,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”