With a pegged currency
, authorities must hold sufficient dollar buffers to maintain faith in the exchange rate, while ensuring steady inflows to keep coffers topped up.
Rather than outline specifics, the document speaks in a vague, somewhat harebrained tone: It doesn't contain any analysis of Qatari bond, derivative, or currency markets or an estimate of the total economic firepower the UAE can put behind the plan, nor does it address how much of Qatar's $68bn in outstanding debt the UAE and it allies already own; how to respond when, as is likely to happen relatively quickly in these lightly traded markets, the Qataris see strange trades and apply pressure to markets in the opposite direction by buying their bonds, stabilising their currency, and selling credit default swaps; or whether a successful attack on a pegged currency
in the region will whip back and lead to pressure on the UAE dirham, the Saudi riyal, and the pegged currencies of their allies.
2002 -- The Cabinet took a historic decision on making the Kuwaiti Dinar a US Dollar pegged currency
starting January 2003.
A pegged currency
is not even the preferred plan for a Independent Scotland it is just one of a number of options.
The government of Denmark has repeatedly expressed its commitment to its pegged currency
regime, confirming our view that the country will not join the eurozone in the next decade.
, with rock bottom rates prevailing in the United States.
Bulgaria runs a pegged currency
system which means its main tool for steering the economy is fiscal policy rather than interest rates, but inflation could turn into a headache for a government struggling to get consumers spending again.
But why was inflation volatility higher than those of peers, such as China, that have similar characteristic of pegged currency
and export orientation?
Critics contend that, while it may have been appropriate for China during the early stages of its economic development to maintain a pegged currency
, it is no longer so today, given the size of the Chinese economy and the impact its policies have on the world economy.
The FCA's analysis of the situation goes beyond the pricing factors to point out what it sees as an even wider-spread effect of the yuan-to-dollar pegged currency
However, in the 12 countries that began 1997 with a floating exchange rate, currency depreciation had a significantly positive effect on stock returns, whereas the effect of depreciation on stock returns was negative and significant for the 13 countries that started the year with a pegged currency
Barclays Capital Global Emerging Markets Strategy (GEMS) Asia 8 Index[TM]", "Barclays Capital Global Emerging Markets Strategy (GEMS) Pegged Currency
Index[TM]" and "Barclays Capital Global Emerging Markets Strategy (GEMS) Index[TM]" are trademarks of Barclays Bank PLC.