Reserve coverage of the monetary base is adequate, but Nicaragua is particularly sensitive to its reserve level given its crawling peg
(5% annual devaluation with respect to the dollar) and high level of dollarization (89% of credit as of September).
However, Renaissance Capital suggests that Egypt considers some sort of crawling peg
monthly devaluation, that would let the currency remain on the cheap side of fair value and help job creation in export industries via a cheap exchange rate.
S&P also view monetary policy effectiveness as limited by the crawling peg
exchange rate arrangement.
The National Bank of Ethiopia (NBE) has sought to continue its crawling peg
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.
After several weeks of stability at the ARS8.000/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.
By 1979 it was judged that a more flexible system was appropriate, and a crawling peg
says Moody's, the central bank's crawling peg
regime could put pressure
The Cairo-based Pharos Holding said the new policy looks like a "crawling peg
" system that targets a specific value to keep the currency from sliding further.
In particular, Jordan, Lebanon, and Morocco have conventional fixed pegs; Tunisia has a crawling peg
and Egypt and Iran have managed floats.