Adjustable Peg

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An adjustable peg is a currency exchange system wherein one country “pegs” its currency to another country’s currency. Usually the pegging country has a weaker currency. The Euro and the Dollar are the currencies most frequently pegged to, because they are strong currencies, and because the United States and Europe are highly influential in the international market. Because the pegging currency is weaker, it may occasionally be adjusted to remain at a reasonable level in comparison with the pegged currency.
 
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