A country that pegs its currency does not have complete control over its local interest rates, as its interest rates must be aligned with the interest rates of the currency to which it is tied.

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When a country pegs its currency, it fixes the exchange rate of its currency to another currency, typically the US dollar. This means that the pegged currency's interest rates must be in line with the interest rates of the peg currency. Therefore, the country loses some flexibility in setting its own local interest rates.

A Country That Pegs Its Currency Does Not Have Complete