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General TradingF
Fixed Exchange Rate
A fixed exchange rate is a regime in which a country's currency value is pegged to another currency, a basket of currencies, or a commodity like gold. The central bank maintains the peg by buying and selling its currency in the forex market.
Example
“Hong Kong maintains a fixed exchange rate, pegging the HKD to the USD at approximately 7.80, with the Hong Kong Monetary Authority actively intervening in forex markets to defend the peg.”