Cryptocurrency Q&A
How to maintain a pegged currency?
How to maintain a pegged currency?
BitcoinBaron
Mon Nov 18 2024
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6 answers
735
I'm wondering about the best practices for maintaining a pegged currency. I need to understand the strategies and measures involved in keeping the value of a currency fixed to another currency or asset.
6 answers
JejuJoyfulHeart
Wed Nov 20 2024
Managing the peg of a currency requires careful oversight of its supply.
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Dario
Wed Nov 20 2024
Authorities must intervene to buy the currency and sell foreign exchange when its value begins to decline.
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CryptoPioneer
Wed Nov 20 2024
This action helps to stabilize the currency's value and maintain the peg.
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Giulia
Tue Nov 19 2024
Conversely, if the currency becomes too strong, authorities will take the opposite approach.
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JejuSunshine
Tue Nov 19 2024
They will sell the domestic currency and purchase foreign exchange to weaken it.
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