Currency Peg
A currency peg is a fixed exchange rate between two currencies. It stabilises a nation’s currency by tying it to a stronger currency, often the US dollar. This can help control inflation and promote trade. However, it limits monetary policy flexibility. Countries may adopt a peg to boost investor confidence and maintain economic stability, but it also carries risks.
The rupee crossing the psychologically significant mark of 90 to the US dollar has once again ignited public anxiety and policy debate. Is this a sign of economic...
December 30, 2025
