{"id":"currency-peg","title":"Currency Peg","content":"**A currency peg** is a fixed exchange rate between two currencies, where one currency is pegged or fixed to another at a predetermined ratio. Typically, the pegged currency is either a smaller or less stable currency, while the other currency is a major global currency such as the US dollar, the euro, or the Japanese yen. [\\[1\\]](#cite-id-h9y391p1l1s)\n\nGovernments or central banks may use currency pegs to stabilize the value of their currency and provide certainty for businesses and individuals. For example, if a country pegs its currency to the US dollar, it can help to stabilize inflation and ensure that exports remain competitive. This is because a fixed exchange rate helps to reduce uncertainty around the value of the currency and makes it easier for businesses to plan and make investment decisions. [\\[2\\]](#cite-id-llz5f9btdg7)\n\nHowever, currency pegs can also create challenges for governments and central banks. If the pegged currency is overvalued relative to market conditions, it can lead to a shortage of the currency as demand for exports increases, leading to inflationary pressures. On the other hand, if the pegged currency is undervalued, it can lead to a loss of foreign reserves as demand for the currency increases. [\\[1\\]](#cite-id-h9y391p1l1s)\n\nOverall, currency pegs are a tool used by governments and central banks to manage the value of currencies and provide stability for economies.\\\n$$widget0 [YOUTUBE@VID](vrOki-sf4qE)$$","summary":"A currency peg is a fixed exchange rate between two currencies, typically used by governments or central banks to stabilize the value and reduce uncertainty.","images":[{"id":"QmRK9C8XtzBvLbEdGw9fmj68XD5x6YdVeC2pCAccBzYfjd","type":"image/jpeg, image/png"}],"categories":[{"id":"glossary","title":"glossary"}],"tags":[],"media":[{"id":"https://www.youtube.com/watch?v=vrOki-sf4qE","size":"0","name":"vrOki-sf4qE","type":null,"source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"h9y391p1l1s\",\"url\":\"https://www.youtube.com/watch?v=vrOki-sf4qE\",\"description\":\"what is pegged currecy\",\"timestamp\":1682938663179},{\"id\":\"llz5f9btdg7\",\"url\":\"https://www.investopedia.com/terms/c/currency-peg.asp\",\"description\":\"investopedia - currency peg\",\"timestamp\":1682939308411}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmXQq97Wp96YMs9qVY3QJ19bNEXSicLJWiEPELix7TpeP5\""},{"id":"commit-message","value":"\"Updated entry ID and retagged cryptocurrencies to glossary\""},{"id":"previous_cid","value":"QmXQq97Wp96YMs9qVY3QJ19bNEXSicLJWiEPELix7TpeP5"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"language":"en","version":1,"linkedWikis":{"blockchains":[],"founders":[],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"2798c3d2-d51c-4bbe-8d9d-30ec23d5af9b\",\"title\":\"Currency Peg\",\"description\":\"A currency peg is a fixed exchange rate between two currencies, typically used by governments or central banks to stabilize the value and reduce uncertainty.\",\"timestamp\":\"2026-06-03T03:38:52.974Z\",\"category\":\"glossary\",\"status\":{\"icon\":\"RiGlobalLine\",\"label\":\"Wiki Updated\",\"iconClassName\":\"text-green-500\"},\"user\":{\"name\":\"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb\",\"address\":\"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138\"},\"button\":{\"label\":\"View Summary\",\"icon\":\"RiFileTextLine\"},\"summarySections\":[{\"title\":\"Categories\",\"subtitle\":\"Category id/title changed\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Changed category id from \\\"cryptocurrencies\\\" to \\\"glossary\\\"\",\"Changed category title from \\\"cryptocurrencies\\\" to \\\"glossary\\\"\"]},{\"title\":\"Tags\",\"subtitle\":\"Tags array modified (tag removed and tags cleared)\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Removed tag with id \\\"Glossary\\\"\",\"Tags array is now empty\"]},{\"title\":\"Metadata\",\"subtitle\":\"New metadata entry added\",\"variant\":\"added\",\"changeCount\":1,\"changes\":[\"Added metadata entry with id \\\"wiki-score\\\" and value \\\"31\\\"\"]},{\"title\":\"Linked Wikis\",\"subtitle\":\"linkedWikis field added with null value\",\"variant\":\"added\",\"changeCount\":1,\"changes\":[\"Added field 'linkedWikis' with value null\"]},{\"title\":\"Size\",\"subtitle\":\"Size value type changed\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"Changed 'size' from numeric 0 to string \\\"0\\\"\"]},{\"title\":\"Type\",\"subtitle\":\"type field added with null value\",\"variant\":\"added\",\"changeCount\":1,\"changes\":[\"Added 'type' with value null\"]}]}]}"}