• Forecasters predict no change in Hong Kong's currency peg this year, but think that China will allow the yuan to trade more freely next year.
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Brazil's real fell sharply in January 1999 after the government abandoned its currency peg.
A country's or government's exchange-rate policy of pegging the central bank's rate of exchange to another country's currency. Currency has sometimes also been pegged to the price of gold.
Also known as a "fixed exchange rate" or "pegged exchage rate".
Currency pegs allow importers and exporters to know exactly what kind of exchange rate they can expect for their transactions, simplifying trade. This in turn helps to curb inflation and temper interest rates, thus allowing for increased trade.