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What are the pros and cons of pegged currency exchange rates?


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Depends on the country in question and its economy.

-1 ( +1 / -2 )

How the hay would I know? I guess it can provide stability if you peg it to the dollar or euro. But, I wonder if the pegged currency can still be mass printed leading to problems.

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If the central bank has the resources to maintain the fixed exchange rate, it can work well.

Generally if a country's economy depends both on exports and imports, the country will try to maintain a fixed exchange rate (or within a certain band) even if it's not an official policy.

-1 ( +0 / -1 )

If you peg it, you got a leg to stand on.

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