Normally, when a pegged exchange rate is broken because of a crisis in that country, there is downward pressure on the local currency of that country.

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When a pegged exchange rate is broken due to a crisis in a country, it often leads to the devaluation of that country's currency as investors lose confidence in the economy and try to sell off their holdings. This downward pressure on the currency can lead to inflation and other economic challenges for the affected country.

Normally, When a Pegged Exchange Rate Is Broken Because of a Crisis