When a country has a pegged exchange rate,its government or central bank has promised to convert its currency into another currency at a fixed rate.

Question

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A pegged exchange rate system involves a fixed conversion rate between a country's currency and another currency, which is typically managed by its government or central bank. This means that the government or central bank will buy or sell foreign currency as needed in order to maintain the exchange rate at the agreed-upon level.

When a Country Has a Pegged Exchange Rate,its Government or Central