Pegged Dollar

Related BrainMass Solutions

• Bretton Woods exchange rates

  168873 Bretton Woods exchange rates Suppose that under the Bretton Woods system, the dollar is pegged to gold at a rate of $35 per ounce and the pound sterling is pegged to the dollar at a rate of $2 = £1.

• appreciation of the US dollar

  Why would a country (for example China) choose to keep their currency relatively pegged to the U.S. dollar?

• True/ False: exchange rate system, Economic Exposure

  , and the dollar was pegged to gold.

• PPT on pegged currencies and Asian crisis

  Pegged Exchange rate system: a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency (most often the US dollar), to a basket of other currencies, or to another measure of

• Economic exposure

  Initially the Thai Baht was pegged to the US dollar and so there would not have been any significant movement of the currency against the dollar and so the economic exposure would be limited.

• Chinese peg, policy and effects

  If this above the equilibrium rate of the dollar in the foreign exchange market then speculation or arbitrage might occur because the world market value of the currency is not reflected by the pegged rate.

• Economic problems faced by Brazil

  Erratic foreign exchange markets: In January 1999, Brazil abandoned its dollar-peg and devalued its currency, the real. Prior to this, Brazil pegged its currency to the dollar.

• Australian Economoy

  Historically the Australian Dollar was pegged to the pound sterling at 0.8 pounds. However, between 1946 and 1971 a peg was maintained to the US dollar. Finally, in 1974 the Australian Dollar was pegged to the trade weighted index.

• Trade controls: Tariffs, Subsidies, and Quotas/Flex Exchange

  China currently has a fixed exchange rate pegged to the US Dollar. How would a flexible exchange rate help China's global business?