To avoid changing your interest rate to put it in line with the country to whose currency your own currency is pegged, you can attempt to buy and sell foreign currency in the exchange market as an alternative.

Question

Quizplus · Accepted Answer

By buying and selling foreign currency in the exchange market, you can maintain the value of your currency and avoid the need to adjust your interest rate to match the country to which your currency is pegged.

To Avoid Changing Your Interest Rate to Put It in Line