Forex

Pegged Currency

Definition

A currency whose exchange rate is fixed or closely tied to another currency (or basket of currencies) by the issuing government or central bank, requiring active intervention to maintain the peg.

Example
The Hong Kong dollar is pegged to the U.S. dollar at approximately 7.8 HKD per USD.
Related Terms
Central Bank Intervention Intervention (Forex) Major Currency Pairs
Frequently Asked Question
What is a Pegged Currency?
A pegged currency is fixed to another currency or basket by the issuing authority. It provides exchange rate stability but requires central bank intervention and large reserves to maintain.
APA Citation
Clark, R. (2025). Pegged Currency. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/pegged-currency
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.