A pegged exchange rate fixes one country's currency to another country’s currency. In order to maintain a pegged exchange rate, a central bank must maintain a high level of currency reserves. The rate is beneficial in that it facilitates trade and investment between two countries with the pegged currencies. It can be especially advantageous ... More @Wikipedia
Hover over any link to get a description of the article. Please note that search keywords are sometimes hidden within the full article and don't appear in the description or title.