How Currencies are Pegged (Fixed Foreign Exchange Rates)

This is a continuation of my initial entry to address questions posed by Fariehaz in an earlier article on FOREX trading.

As usual, I’ll keep it simple. I won’t get into too much details.

First of all, currency peg means fixing the exchange rate of one currency against the other (contrast with floating exchange rates). For example, the Malaysian Ringgit (MYR) was pegged with the US Dollars (USD) at 3.800, after the Asian financial crisis.

So, how is a currency pegged?

[Read more…]

Return to top of page

Copyright © 2020 · Faliq Fauzi · Log in