Today, a Korean customer asked me what the definition of "currency peg" is.
some explanations from Washington Post for reference:
Currency peg
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Sunday, September 25, 2005; Page F03
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?In international finance, a government determination to hold constant the exchange rate of its currency with another currency.
?The opposite of a currency whose exchange rate is set on currency markets with little or no central bank intervention. (See floating currency.)
?A policy adopted by numerous developing countries in the past, often with the blessing of the International Monetary Fund.
?A strategy that conforms to IMF and World Trade Organization rules as long as it is designed primarily to control inflation and the growth of monetary aggregates and encourage foreign investment.
?A strategy that violates IMF and WTO rules, and U.S. trade laws, if it involves large-scale and protracted intervention in one direction to gain a competitive advantage in international trade. (See currency manipulation.)
?The regime adopted by China, first with its peg to the dollar, now with its peg to an undisclosed basket of currencies, that has resulted in a huge trade surplus with the United States.
?The source of growing friction between China and the G-7 industrialized countries.
[此贴子已经被作者于2005-10-10 22:26:37编辑过]
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发表于 2005-10-11 11:16
