Depeg

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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 ?
A report made by the House's financial, economic and industrial affairs committee suggested it was high time to reconsider depegging from the US dollar.
Currency depegging would raise uncertainty about the prices of imported goods in the region, adding to inflationary pressures, according to Moody's.
A depegging of the riyal from the US dollar, seen by analysts as among the potential black swan or an unpredictable event in 2016, could curb the decline in Saudi Arabia's foreign reserves.
The yuan has been one of the strongest currencies in the world for years, as its nominal effective exchange rate has appreciated 46 percent since China initiated forex reforms by depegging the yuan from the U.
The papers from that conference appear in this issue of the Cato Journal along with articles by Peter Bernholz on the recent depegging of the Swiss franc and by Tyler Watts and Lukas Snyder on the resource costs of fiat versus commodity money.
Interestingly, rates on loans in euros increased by much less, suggesting that investors were more worried about the risk of euro depegging rather than about credit risk (see figure 7).
In 2008, hot money flowed into dollar-pegged markets as speculators hoped to benefit from a depegging of local currencies.
intentions to depegging the local currency, Dirham, to the US Dollar nor
There is plenty of evidence today that the Gulf economies as a whole will neither consider devaluing or depegging from the dollar as it is neither prudent nor serves an economic purpose," he said.
Summary: Depegging looks improbable says Abdulrahman Al-Attiyah
No change is likely soon, but we continue to believe that the arguments for depegging are strong and anticipate they will gain traction as the temporarily aligned policy needs of the US and the Gulf diverge," he said.
The US dollar lost its position as the currency of choice for sukuk issuance this year, not only because of its weakness but also due to speculation about the depegging of some GCC currencies from the dollar," said Mr Damak.