Glossary / Foreign Exchange

Pegged Currency (Fixed Exchange Rate) - Currency Glossary Definition

What is Pegged Currency (Fixed Exchange Rate)? Detailed financial and typographic definition, background, and practical usage examples.

Definition

Pegged Currency (Fixed Exchange Rate)

A currency system where a nation's central bank fixes its currency rate to that of another major currency (often USD or EUR) or a basket of currencies.

Detailed Overview & Context

Examples include the UAE Dirham (AED), Saudi Riyal (SAR), and Hong Kong Dollar (HKD), all linked to the US Dollar.

Example Currencies Operating Under This Term

د.إ
UAE DirhamAED
→﷼
Saudi RiyalSAR
→HK$
Hong Kong DollarHKD
→

Authoritative Regulatory & Standards References

IMF

International Monetary Fund (IMF) Annual Report on Exchange Arrangements

www.imf.org
SAMA

Saudi Central Bank (SAMA) Fixed Exchange Policy

www.sama.gov.sa