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, although prior to the 1970s the Bretton Woods system made fixed currencies the norm. A fixed exchange rate, sometimes (less commonly) called a pegged exchange rate, is a type of exchange rate regime wherein a currencys 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 value... The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. ... Wikipedia does not have an article with this exact name. ...
A fixed currency is contrasted with a floating currency. Fixing a currency represents a particular type of monetary policy. A floating currency is a currency that uses a floating exchange rate as its exchange rate regime. ... Monetary policy is the process of managing a nations money supply to achieve specific goals—such as constraining inflation, achieving full employment or more well-being. ...
China's Renmimbi (Which actually means "The People's Money") has been pegged for decades. This has led to many trade wars between the USA and China seeing that the USA fears losing their economic prowess to the Chinese.
Currencies can be classified as either floating currencies or fixedcurrencies based on their exchange rate regime.
The origin of currency is the creation of a circulating medium of exchange based on a unit of account which quickly becomes a store of value.
Currency evolved from two basic innovations: the use of counters to assure that shipments arrived with the same goods that were shipped, and later with the use of silver ingots to represent stored value in the form of grain.
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