Crawling peg

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Crawling peg

An automatic system for revising the exchange rate. It involves establishing a par value around which the rate can vary up to a given percent. The par value is revised regularly according to a formula determined by the authorities.

Crawling Peg

A situation in which one currency links its value to that of another currency, but allows it to fluctuate within certain limits. This differs from a straight peg, which has one currency permanently valued at a certain amount in relation to another currency; it also differs from a floating currency, which changes in value according to market factors. A crawling peg may be valuable if a currency would otherwise be exceptionally volatile; it allows the currency to fluctuate to an acceptable level.
References in periodicals archive ?
The region features several currency boards, fixed but adjustable pegs, crawling pegs, bands, and crawling bands, as well as almost pure floats.
It should also be noticed that large step devaluations may occur without a change in the exchange rate regime (e.g., under an adjustable peg).
Two adjustable pegs prevent pages from flipping, yet allow easy page-turning.

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