What is an Adjustable Peg? an exchange rate policy where a country pegs its currency to a major currency, like the US dollars, and can readjust it to reflect a change in market condition. An ...

In recent years developing and transition countries have tended to move away from adjustable-peg regimes to more flexible regimes or toward hard pegs. The literature has identified this phenomenon as ...

All exchange rate regimes create difficulties. But, painful experience has now reinforced the theoretical presumption against adjustable pegs in a world of capital account convertibility.

A system where countries manage their exchange rates around par values. This allows countries to intervene in the foreign exchange markets to keep their exchange rates within a margin, ie. the peg.