A Pegged Currency is controlled at a particular level in relation to another that is defined as the policy whereby the government or the central bank maintains a fixed exchange rate to the currency belonging to another country and stabilises the exchange rate between countries. (e.g., China was pegged with US dollars until 2015. Most of the Caribbean islands and many Middle East countries peg to the U.S. dollar for stability. In Africa, many countries peg to the euro.)

Related Definitions in the Project: The Economic Reviews