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what is crawling peg

Posted by Prateek Sheoran 4 years, 2 months ago

CBSE > Class 12 > Economics

1 answers

Yogita Ingle 4 years, 2 months ago

Crawling Peg is a compromise between fixed exchange rate and flexible exchange rate. According to Crawling Peg system, a country specifies a parity value for its currency and allows small adjustment i.e. permits a small variation around that parity (such as ± 1% from the parity). There is a ceiling and floor limit so that it can provide some discipline on the part of monetary authorities.

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