Under a pegged exchange rate system, the home currency's value is pegged to a foreign currency.

Name: Under a pegged exchange rate system, the home currency's value is pegged to a foreign currency.
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In a pegged exchange rate system, the value of the home currency is fixed (or pegged) to a foreign currency. This means that the exchange rate between the two currencies is set and maintained by the government or central bank, rather than being determined by market forces.

Under a Pegged Exchange Rate System, the Home Currency's Value