To stabilize the value of a currency against another currency or a basket of currencies

To increase the value of a currency relative to other currencies

To decrease the value of a currency relative to other currencies

To control inflation

Fixed peg

Adjustable peg

Crawling peg

Floating peg

Fixed and cannot be changed

Fixed but can be changed under certain circumstances

Allowed to fluctuate within a narrow band

Allowed to fluctuate freely

Exchange rate stability

Reduced transaction costs

Increased foreign investment

Increased economic growth

Loss of monetary independence

Increased inflation

Currency crises

Increased exports

In a fixed peg, the exchange rate is fixed and cannot be changed, while in an adjustable peg, the exchange rate can be changed under certain circumstances.

In a fixed peg, the exchange rate is allowed to fluctuate within a narrow band, while in an adjustable peg, the exchange rate is fixed.

In a fixed peg, the domestic currency is pegged to a single anchor currency, while in an adjustable peg, the domestic currency is pegged to a basket of currencies.

In a fixed peg, the central bank intervenes in the foreign exchange market to maintain the exchange rate, while in an adjustable peg, the central bank does not intervene.

A type of currency peg where the exchange rate is adjusted periodically in small increments

A type of currency peg where the exchange rate is fixed and cannot be changed

A type of currency peg where the exchange rate is allowed to fluctuate within a narrow band

A type of currency peg where the exchange rate is allowed to fluctuate freely

China

United States

Japan

United Kingdom

Saudi Arabia

Russia

Brazil

India

Chile

Colombia

Mexico

Peru

It helps to stabilize the exchange rate and reduce uncertainty for businesses and investors.

It helps to promote economic growth by attracting foreign investment.

It helps to control inflation by limiting the amount of money in circulation.

It helps to increase exports by making the domestic currency more competitive.

It can lead to a loss of monetary independence.

It can make it difficult to adjust to external shocks.

It can lead to currency crises if the peg is not sustainable.

All of the above

The 1997 Asian financial crisis

The 2008 global financial crisis

The 2013 Cypriot financial crisis

The 2015 Greek financial crisis

Currency pegs are likely to become more common in the future.

Currency pegs are likely to become less common in the future.

Currency pegs are likely to remain at the same level in the future.

It is difficult to predict the future of currency pegs.