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Preferred term

pegged exchange rate  

Definition

  • A pegged exchange rate exists when a government fixes the value of its country's currency to that of another country or group of countries (the reference currency/currencies). As a result, when the value of the reference currency/currencies rises, so does the value of the pegged currency, and when the value of the reference currency/currencies falls, so does that of the pegged currency. [Source: Encyclopedia of Business in Today's World; Pegged Exchange Rate]

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URI

https://concepts.sagepub.com/social-science/concept/pegged_exchange_rate

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