Fixed currency

A fixed currency, less commonly called a pegged currency, is a currency that uses a fixed exchange rate as its exchange rate regime. In the modern world, fixed currencies form a minority of the world's currencies. Prior to the 1970s, the Bretton Woods system made fixed currencies the norm; however, in 1973, the United States government abandoned the gold standard, so that the US dollar was no longer a fixed currency, and most of the world's currencies followed suit.

Related Topics:
Currency - Fixed exchange rate - Exchange rate regime - 1970s - Bretton Woods system - 1973 - United States - Gold standard - US dollar

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A fixed currency is contrasted with a floating currency. Fixing a currency represents a particular type of monetary policy.

Related Topics:
Floating currency - Monetary policy

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