Unpeg

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Unpeg

To remove a peg to which a country's currency previously subscribed. For example, Kuwait unpegged the Kuwaiti dinar from the U.S. dollar and shifted to a currency basket in 2007 because the dollar was weak at the time, resulting in high inflation. When a country unpegs a currency, it may choose to peg the currency to something else or to let it float.
References in periodicals archive ?
Nixon could either give up on issuing dollars and restrict war spending or go on by unpegging the dollar from gold.
Summary: United Arab Emirates (UAE) Central bank governor Sultan Nasser al-Suweidi said the region has no intention of unpegging its currency from the US dollar despite the latter's appreciation in value recently.
MANAMA: The unpegging of Gulf currencies from the dollar would hurt local exports and not calm rising property rents in the GCC, a top economist said yesterday.
Neighbours who raced to the scene described how Mrs Chubb had acted in a strange manner - unpegging washing from a clothes line and closing windows as her husband burned to death in the shed.
The advancing globalization of economic activity in general and financial markets in particular, together with the unpegging of exchange rates following the collapse of the Bretton Woods system in the early 1970s, matters in each of these contexts and more besides.
For this reason, he must have welcomed it that the unpegging of the ringgit could be done in the shadow of China's move and attracted very little attention.
Despite the escalating tensions treated by this issue between Washington and Beijing in recent months, the Chinese government has made it abundantly clear that it has no intention of unpegging the yuan from the dollar.
The importance attached to export promotion could explain the reluctance of the Asian countries to abandon pegs when exchange rates were under upward pressure in the mid-1990s, conditions which would seem to have been ideal for unpegging in an orderly way (Eichengreen and Masson et al.
Indeed, he supported unpegging the federal funds rate to counter incipient price pressures showing through in commodity and finished goods prices.