crawling peg


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Related to crawling peg: Currency board, Managed float

crawling peg

n
(Economics) a method of stabilizing exchange rates, prices, etc, by maintaining a fixed level for a specified period or until the level has persisted at an upper or lower limit for a specified period and then permitting a predetermined incremental rise or fall
References in periodicals archive ?
The National Bank of Ethiopia (NBE) has sought to continue its crawling peg system.
Botswana operates a crawling peg for the pula against the South African rand (ZAR) and the International Monetary Fund's special drawing rights (SDR), which is a basket of major currencies.
In fact, the crawling peg encourages some kinds of capital outflows, such as carry trade unwinding, the dollarisation of household accounts, and withdrawal by portfolio investors.
000/USD mark, monetary authorities have once again opted for a gradual depreciatory policy, returning to the crawling peg against the US dollar, broadly in line with our forecast for this year.
Earlier, we had expected substantial downward pressure on reserves to force the government into a large, one-off devaluation, but the Argentine government has instead dramatically increased the rate at which the crawling peg depreciates.
By 1979 it was judged that a more flexible system was appropriate, and a crawling peg was introduced.
says Moody's, the central bank's crawling peg regime could put pressure
In particular, Jordan, Lebanon, and Morocco have conventional fixed pegs; Tunisia has a crawling peg and Egypt and Iran have managed floats.
The downgrade of the local currency ratings of Botswana to the level of its foreign-currency ratings is largely based on its crawling peg and underdeveloped domestic debt market, S&P said.
For example, both China and Vietnam officially are maintaining a crawling peg policy that allows their currencies--the renminbi and the dong, respectively--to adjust in value with respect to an undisclosed bundle of currencies within a specified range each day.
5 billion rescue packet from the IMF, the World Bank and the international financial community to stabilize the Brazilian economy and to defend the crawling peg of the R$ to the US$, with a yearly nominal devaluation of 7.
In order to explore the implications of the exchange rate system, a regime of completely flexible exchange rates is compared to a crawling peg regime and to a regime of fixed exchange rates.