Small nations, such as Angola and Barbados, peg their currencies to the U.S.dollar since the prices of many of their traded goods are determined in markets in which the dollar is the key currency.

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Small nations often peg their currencies to the U.S. dollar because it is the key currency in many traded goods markets, which affects the prices of their own exports and imports.

Small Nations, Such as Angola and Barbados, Peg Their Currencies