Crawling peg

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Related to Crawling Peg Exchange Rate: Crawling Peg System

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
However, the Cordoba's crawling peg exchange rate to the U.S.
As in Chile, initially a crawling peg exchange rate regime was maintained.
A case can perhaps be made for the crawling peg exchange rate when the economy is largely insulated.