Fixed exchange rate

Currencies in this category are currently subject to monetary policy that uses an explicit exchange rate target. Such currencies are described as fixed or pegged currencies.

Currencies using an exchange-rate target actually float within a very narrow band, typically only a percent or two either side of a nominal exchange-rate target.

This may be contrasted with currencies subject to monetary policy that uses some other monetary target (e.g. interest rates).

• Open market operation
• Fixed exchange rate system
• Currency board
• Currency substitution
• Currency union