Arate means the value of the currency is fixed relative to a reference currency and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate. multiple choice pegged exchange currency board

Pegged exchange rate system

Explanation:

In the pegged exchange rate system, a country ties its currency exchange price to that of a more widely used currency at a fixed rate. The US dollar is the most accepted currency for international trade. Countries that use the fixed exchange system peg their currency price to the US dollar.   The government will set a  fix the exchange rate of its currency relative to the US dollar value.

A pegged exchange rate is also known as a fixed exchange rate. A pegged or fixed exchange rate keeps the currency value within a narrow range. It gives certainty to exporters and importers and helps the government to keep inflation low.

A= exchange rate on edg 2020 :)

Explanation:

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