Meaning of the word "currency peg" in English

What does "currency peg" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

currency peg

US /ˈkɝː.ən.si peɡ/
UK /ˈkɝː.ən.si peɡ/
"currency peg" picture

Noun

1.

a policy in which a country's currency value is fixed against the value of another single currency or a basket of other currencies

Example:
Many countries use a currency peg to stabilize their exchange rates.
The central bank decided to maintain the currency peg despite economic pressures.
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