An arrangement by which a group of currencies maintain a fixed relationship relative to each other, but move jointly relative to another currency in response to supply and demand conditions in the exchange market.
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An agreement between the central banks of two or more different countries where their currencies remain at the same exchange rate relative to each other, but are otherwise floating currencies. The two central banks make the relevant purchases and sales of each other's currencies in order to maintain the joint float. See also: Peg.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved