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General TradingS
Soft Peg
A currency regime in which a country's exchange rate is loosely tied to another currency or basket of currencies, allowing some fluctuation within a defined range. Unlike a hard peg, the central bank may occasionally adjust the rate.
Example
“China maintains a soft peg for the yuan against the US dollar, allowing the People's Bank of China to set a daily reference rate while permitting the currency to trade within a 2% band around it.”