Pegging

What is Currency Pegging?

Currency pegging is fixing a currency's exchange rate to that of another country.

In an attempt to stabilise a country's currency, a country's government may create a fixed exchange rate, or a pegged exchange rate, to maintain the value of its currency. Pegging a currency provides benefits, such as minimising instabilities in economic activity, but can also cause problems with trade balance.

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Russell Shor

Russell Shor

Senior Market Specialist

Russell Shor (MSTA, CFTe, MFTA) is a Senior Market Specialist at FXCM. He joined the firm in October 2017 and has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the International Federation…

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