Under a pegged exchange rate system,the home currency's value is pegged to a foreign currency or to some unit of account.

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In a pegged exchange rate system, the value of the home currency is fixed or "pegged" to the value of a foreign currency or a basket of currencies. This means that the exchange rate between the two currencies is relatively stable and predictable, as the central bank or government will intervene in the foreign exchange markets to maintain the peg.

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