Investing for Beginners , investing

investingforbeginners.eu Just as a cautious businessman avoids investing all his capital in one concern, so wisdom would probably admonish us also not to anticipate all our happiness from one quarter alone.
Sigmund Freud

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    Pegged Exchange Rate

     

    Pegged (fixed) exchange rate is a regime of currency which value is related to some other stronger currency or a portfolio of currencies. Many smaller emerging countries have their currencies pegged to USD or to EUR, because their economies are two small to maintain floating exchange rate. 

     

    The main disadvantage of pegged exchange rate that country looses flexibility of monetary policy, but it is a strongest tool for control of inflation.

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