In this type of regime, the value of a currency is fixed to an external benchmark, typically another currency or a basket of currencies, gold or some other commodity. The central bank intervenes in the foreign exchange market to maintain the peg.
In this type of regime, the value of a currency is fixed to an external benchmark, typically another currency or a basket of currencies, gold or some other commodity. The central bank intervenes in the foreign exchange market to maintain the peg.