Cryptocurrency Q&A
Why is a pegged exchange rate bad?
Why is a pegged exchange rate bad?
Giulia
Tue Nov 19 2024
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5 answers
1152
I want to understand why a pegged exchange rate is considered unfavorable. What are the negative impacts or consequences associated with it?
5 answers
SumoStrength
Thu Nov 21 2024
When the fixed rate does not align with the currency's actual market value, economic distortions may arise.
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KatanaSharpness
Thu Nov 21 2024
This misalignment can cause trade imbalances, as the artificial exchange rate may not favor the country's exports or imports.
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Valentino
Thu Nov 21 2024
Over time, such imbalances can strain a country's foreign reserves, as it may need to intervene frequently to maintain the peg.
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GeishaElegance
Thu Nov 21 2024
BTCC, a prominent cryptocurrency exchange, offers a range of services that cater to the digital asset market.
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CryptoWarrior
Thu Nov 21 2024
A pegged exchange rate system can have unintended consequences on an economy.
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