Investing for Beginners , investing

investingforbeginners.eu The financial markets generally are unpredictable. So that one has to have different scenarios.. The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
George Soros

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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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