A fixed exchange rate, sometimes (less commonly) called 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 value, such as gold. As the reference value rises and falls, so does the currency pegged to it. A currency that uses a fixed exchange rate is known as a fixed currency. The opposite of a fixed exchange rate is a floating exchange rate. The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. ... The United States dollar is the official currency of the United States. ... 1922 U.S. gold certificate The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. ... A fixed currency, sometimes (less commonly) called a pegged currency, is a currency that uses a fixed exchange rate as its exchange rate regime. ... A floating exchange rate is a type of exchange rate regime wherein a currencys value is allowed to fluctuate according to the foreign exchange market. ...

Economists generally think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates because floating rates are responsive to the foreign exchange market. However, in certain situations, fixed exchange rates may be preferable for their greater stability. For example, the Asian financial crisis was ameliorated by the fixed exchange rate of the Chinese renminbi, and the IMF and the World Bank now acknowledge that Malaysia's adoption of a peg to the US Dollar in the aftermath of the same crisis was highly successful. An economist is someone who studies Economics. ... The Currency Market or Foreign Exchange Market is the market where one currency is traded for another. ... The Asian financial crisis was a financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries, many part of the East Asian Tigers. ... The renminbi (Traditional Chinese: 人民幣, Simplified Chinese: 人民币, literally means peoples currency) is the legal tender in the mainland of the Peoples Republic of China. ... The flag of the International Monetary Fund (IMF) The International Monetary Fund (IMF) is the international organization entrusted with overseeing global financial system‘s current trade account balances of member states. ... The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means of financing states. ...

Some countries, like China, do not hold to perfectly fixed exchange rates, but rather adopt currency bands. These allow for small changes in the relative value of currency, but prevent large shifts.

For countries adopting a fixed exchange rate, careful and strict adherence to policy imperatives is key, and in the absence of the capital markets' confidence in the management of such a regime, the peg can well fail (see Argentine Currency Board). The capital market is the market for long-term loans and equity capital. ... This article needs copyediting (checking for proper English spelling, grammar, usage, etc. ...