Depeg

(redirected from Depegged)

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 ?
2) The Swiss have now depegged the franc from the euro, and the November 2014 gold referendum failed to be passed (Ed.
2 percent since it was officially depegged from the dollar and allowed to float within a range set by the central bank in June 2010.
lt;span style="mso-spacerun: yes;">&nbsp;</span>When it depegged from the dollar on June 20, it probably would have had to diversify out of some of its dollar-dominated assets into euro-denominated assets, thereby buying up euros.
70 per dollar for the first time since Beijing depegged it from the dollar in 2005.
Previously, foreign investors deposited funds into the UAE's banks in the hopes that the dirham would be depegged from the dollar, and the value of the dirham would rise.
Some described the policy adopted since 2003, especially since 2005 when the Renminbi (China's currency) depegged from the US dollar and embarked on the road of appreciation, as "self-destruction".
Speaking in Doha on Sunday, Paulson said: "You can look at Kuwait, they depegged to a basket of currencies (but) they have the same inflation .
In May 2007, Kuwait depegged its currency from the dollar and reverted back to a currency basket regime in which the dollar still holds a predominant weight.
China's central bank, which keeps the currency on a tight leash, let the yuan rise yesterday to its highest level since it was revalued and depegged from the dollar in July 2005.
1532 per dollar, the highest level since the yuan was depegged from the dollar in July 2005 and allowed to float within managed bands.