Fixed currency

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Foreign Exchange

Exchange Rates Currency band Exchange rate Exchange rate regime Fixed exchange rate Floating exchange rate Linked exchange rate

Markets Foreign exchange market Futures exchange

Products Currency Currency future Forex swap Currency swap Foreign exchange option

See also Bureau de Change

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.

A fixed currency is contrasted with a floating currency. Fixing a currency represents a particular type of monetary policy. Most currencies with currently fixed exchange rates are pegged to either the U.S. dollar (the dollar standard) or the euro (the euro standard).

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