Crawling peg

Crawling peg

Crawling peg is an exchange rate regime usually seen as a part of fixed exchange rate regimes which allows depreciation or appreciation in an exchange rate gradually. Some central banks use a formula which triggers a change when certain conditions are met (like need for adjustment for inflation), while others prefer not to use a preset formula and change exchange rate frequently to discourage speculations.

"For example, in the 1990s, Mexico had fixed its peso with the U.S. dollar. However, due to the significant inflation in Mexico, as compared to the U.S., it was evident that the peso would need to be severely devalued. Because a rapid devaluation would create instability, Mexico put into place a crawling peg exchange rate adjustment system, and the peso was slowly devalued toward a more appropriate exchange rate." [1]

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  • Crawling Peg —   [ krɔːlɪȖ peg, englisch] der, (s)/ s, im internationalen Währungssystem mittelfristig garantierter Paritätsanstieg. Die Währungsbehörde eines Landes erklärt verbindlich, dass während eines bestimmten zukünftigen Zeitraumes die Devisenkurse, zu… …   Universal-Lexikon

  • crawling peg — noun (economics) A system of stabilizing prices or exchange rates by allowing a limited amount of rise or fall at predetermined intervals • • • Main Entry: ↑crawl …   Useful english dictionary

  • Crawling Peg — Als Crawling Peg (auch Crawl, gleitende Paritäten genannt) bezeichnet man ein Wechselkurssystem, bei dem sich die Wechselkurse nicht auf einmal beträchtlich, sondern mehrfach in kleineren Schritten ändern. Eine im Vorfeld festgelegte und bekannt… …   Deutsch Wikipedia

  • Crawling peg — An automatic system for revising the exchange rate. It involves establishing a par value around which the rate can vary up to a given percent. The par value is revised regularly according to a formula determined by the authorities. The New York… …   Financial and business terms

  • crawling peg — An automatic system for revising the exchange rate. It involves establishing a par value around which the rate can vary up to a given percent. The par value is revised regularly according to a formula determined by the authorities. Bloomberg… …   Financial and business terms

  • crawling peg — adjustable peg; sliding peg A method of exchange rate control that accepts the need for stability given by fixed (or pegged) exchange rates, while recognizing that fixed rates can be prone to serious misalignments, which in turn can cause periods …   Big dictionary of business and management

  • Crawling Peg — Craw|ling Peg [ krɔ:liŋ pɛg] der; [s], s <aus gleichbed. engl. crawling peg zu to crawl »kriechen« u. peg »Stift, Pflock«> mittelfristig garantierter Paritätsanstieg (im internationalen Währungssystem) …   Das große Fremdwörterbuch

  • Crawling Peg — A system of exchange rate adjustment in which a currency with a fixed exchange rate is allowed to fluctuate within a band of rates. The par value of the stated currency is also adjusted frequently due to market factors such as inflation. This… …   Investment dictionary

  • crawling peg — / krɔ:lɪŋ peg/ noun a method of controlling exchange rates, allowing them to move up or down slowly …   Dictionary of banking and finance

  • crawling peg — Debe traducirse al español como «ajuste mensual de la paridad del cambio» o «tipo de cambio móvil» …   Diccionario español de neologismos

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