Depeg

(redirected from De-Pegging)

Depeg

To remove a previously instituted peg on a currency. For example, if Currency A is pegged to Currency B at a 1:1 ratio, but the central bank for Currency A decides to let it float, it is said to be depegged from Currency B. Depegging may occur if the peg is causing inflation or if the central bank is unable to sustain the peg for other reasons.
References in periodicals archive ?
The de-pegging of the Swiss franc in January 2015 and the subsequent changes in the relative values of the euro and US dollar led to a decrease in total client assets, which was partially offset by the positive contributions of market performance and net inflows from each of our three business lines during the first six months of the year.
While de-pegging Gulf currencies from the US dollar will not happen in the foreseeable future because of the oil trade -- and Kuwait's bad de-pegging experiences-, but forward-looking economists are already predicting that a shift in the world's major trade currencies will only be a matter of time.
In 2008, the UAE banks had landed in a serious liquidity squeeze, after foreign banks withdrew Dh100 billion worth of funds from the local banks placed with them to make quick gains from the much-anticipated de-pegging of the UAE dirham from the US greenback, which did not happen.
I don't see de-pegging in the near future in any GCC country, as inflation is still in the low single digits and we don't expect it to rise very sharply over the next one to two years," said Khatija Haque, senior economist at Emirates NBD in Dubai.
Petroleum engineer Waleed Al-Halw said that he believes oil and dollar are indispensible and none would risk to de-pegging oil to dollar due to the strength of this currency on the international markets.
24) In addition, the RMB peg to the US dollar was highly disputed and the de-pegging of the dollar must be an option for the PBC, which may have implications for the linkage of the RMB to several major trading currencies, rather than the US dollar alone.
00 against the US dollar," Fadak said, adding that beyond these measures de-pegging needs to be considered to curb rising inflation.
The UAE is not considering de-pegging its currency from the US dollar despite the greenback's recent weakness, a Reuters report citing a central bank official said yesterday.
ABU DHABI: The United Arab Emirates is not worried about the dollar's weakness given low inflation, and is not considering de-pegging its dirham from the greenback, a senior central bank official said on Monday.
But the GCC states, spearheaded by Organisation of Petroleum Exporting Countries kingpin Saudi Arabia, rejected pressures for de-pegging.
For the near term, the recent fall in the inflation level in the Gulf will keep the discussions on de-pegging more muted.
For instance, in 2007: EAEThere was too much talk going around relating to de-pegging the dirham, and we saw lot of interest from people trying to sell dollar and buy dirham in anticipation that it would de-peg,Eo notes Rawashdeh.