Pegged Exchange Rates

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Exchange rate are pegged when official purchasesor sales from the monetary authorities maintain the exchange rate of thenational currency within narrow bands of fluctuations (at the limitzero) vis-à-vis the currency (basket of currencies) chosen as “anchor”.Pegged may be a set of rules or conventions governing monetary and financialrelations between countries, as in the Bretton Woods regime, or, in aworld of fluctuating exchange rates, it can be the individual choice of acountry to find a nominal anchor for its currency.

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关键词：exchange Exchang change Rates CHAN individual countries maintain currency exchange