Cryptocurrency Q&A
Is pegged the same as fixed exchange rate?
Is pegged the same as fixed exchange rate?
Daniele
Tue Nov 19 2024
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5 answers
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I'm trying to understand the financial term 'pegged' and if it means the same thing as a 'fixed exchange rate'. Could someone clarify this for me?
5 answers
Enrico
Wed Nov 20 2024
A fixed exchange rate, also known as a pegged exchange rate, represents a specific form of exchange rate regulation.
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SoulWhisper
Wed Nov 20 2024
By maintaining this fixed relationship, the monetary authority aims to stabilize its currency's value and foster economic stability.
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JejuJoyfulHeart
Wed Nov 20 2024
In this system, the monetary authority of a country sets a fixed value for its currency.
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Paolo
Wed Nov 20 2024
This fixed value is usually tied to another single currency, such as the US dollar, or a basket of multiple currencies.
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Chloe_martinez_explorer
Wed Nov 20 2024
Alternatively, the peg can be established against a commodity like gold, which serves as a store of value.
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