Meaning of crawling peg | Babel Free

Definitions

An exchange rate regime that allows depreciation or appreciation to happen gradually.

Examples

“Many analysts assume that a floating rate would have the same general tendency over time as a rate devaluing according to a crawling peg, but this is not certain. If the exchange rate is “undervalued,” for example, in the sense that foreign exchange is in excess supply, a crawling-peg policy would preserve the undervaluation; a floating exchange rate would appreciate and therefore be less inflationary.”

““Many emerging-market economies have tried a number of technical devices: the fixed rate peg, varieties of crawling peg, currency boards and even dollarization,” Mr. Greenspan said in a recent speech. “The success has been mixed. Where successful, they have been backed by sound policies.””

CEFR level