Dollar Peg

A dollar peg is a financial strategy where a country fixes its currency's value to the US dollar at a set exchange rate. This means the country's currency will always be worth a specific amount of dollars, which can help stabilize its economy and make trade easier. By pegging to the dollar, the country aims to avoid fluctuations in its currency's value, providing certainty for businesses and investors. However, maintaining this peg can be challenging, especially if the country's economic conditions differ significantly from those of the US.