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 ?
Once the Middle East has a common currency (hopefully by 2010) and depegs from the US dollar, it will have to start thinking for themselves, which will be very interesting to see.