Fixed Currency

(redirected from Pegged Currencies)

Fixed Currency

A currency to which the government has linked the value of another currency or, rarely, some valuable commodity like gold. For example, under the Bretton Woods System, most world currencies fixed themselves to the U.S. dollar, which in turn fixed itself to gold. A government may fix its currency by holding reserves of the other currency (or the asset to which it is fixed) in the central bank. For example, if a country fixes its currency to the British pound, it must hold enough pounds in reserve to account for all of its currency in circulation.
References in periodicals archive ?
But this guarantee rests on an illusion, because neither Facebook nor any other private party involved will have access to unlimited stores of the pegged currencies.
But this guarantee rests on an illusion, because neither Facebook nor any other private party involved will have access to unlimited stores of the pegged currencies. To understand what happens when regulators sit on their hands while financial innovators create put options, consider the debacle with money market funds in September 2008.
The TRC20-based USDT enables interoperability with TRON-based protocols and Decentralised Applications (DApps) while allowing users to transact and exchange fiat pegged currencies across the TRON Network.
"Higher oil prices, pegged currencies in the GCC, low debt, large public foreign assets, and a lower degree of integration into global financial markets make Mena, and particularly GCC, less vulnerable to global macro events," the report said.
The two funds are denominated in US Dollar and pegged currencies, and will target an annual return of 7 per cent and 6 per cent respectively.
Following the vote for Brexit and the slump in sterling value, investors who hold their wealth in dollar pegged currencies such as the dirham saw hundreds of thousands of UK pounds wiped off their assets.
Slim also talked about the impact that lower oil prices have had on the GCC's pegged currencies.
According to the report, the lower oil prices and appreciation of the US dollar decreased the demand for real estate and weighed on the performance of key sectors like retail and tourism especially for visitors with no US Dollars pegged currencies. In details, the Dubai office market saw the delivery of 700,000 square meters of gross leasable area (GLA) in 2015, increasing the total stock to 8.3 million square meters.
Taimur Baig, Deutsche Bank's chief Asia economist, said that unlike 1997, when pegged currencies were attacked as over-valued, today's floating ones are "weakening willingly" in response to outflows.
There is also the upcoming detente in Iran and this is yet another potential headwind for oil given its effect on the already precarious supply-demand calculus." Another theme which could be important for the GCC's dollar pegged currencies is the upcoming federal policy normalisation and the ongoing strengthening view on the dollar.
Mishra likes countries prone to "solid macroeconomic fundamentals, pegged currencies [to the US dollar] and low correlations to developed markets".
Back when the world had tradable pegged currencies, the market often attacked pegs it deemed to be unsustainable.