{"id":64264,"date":"2022-10-07T12:26:18","date_gmt":"2022-10-07T06:56:18","guid":{"rendered":"https:\/\/mudrex.com\/blog\/?page_id=64264"},"modified":"2022-10-26T15:43:14","modified_gmt":"2022-10-26T10:13:14","slug":"hard-peg","status":"publish","type":"page","link":"https:\/\/mudrex.com\/blog\/glossary\/hard-peg\/","title":{"rendered":"Hard Peg"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"64264\" class=\"elementor elementor-64264\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0b8cb28 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0b8cb28\" data-element_type=\"section\" id=\"navigation-sample-sec\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-93eb9ed\" data-id=\"93eb9ed\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d303989 elementor-nav-menu--dropdown-mobile elementor-nav-menu__text-align-center elementor-hidden-mobile elementor-nav-menu--toggle elementor-nav-menu--burger elementor-widget elementor-widget-nav-menu\" data-id=\"d303989\" data-element_type=\"widget\" id=\"nav-vategory-menu\" data-settings=\"{&quot;layout&quot;:&quot;horizontal&quot;,&quot;submenu_icon&quot;:{&quot;value&quot;:&quot;&lt;i class=\\&quot;fas fa-caret-down\\&quot;&gt;&lt;\\\/i&gt;&quot;,&quot;library&quot;:&quot;fa-solid&quot;},&quot;toggle&quot;:&quot;burger&quot;}\" data-widget_type=\"nav-menu.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<link rel=\"stylesheet\" href=\"https:\/\/mudrex.com\/blog\/wp-content\/plugins\/elementor-pro\/assets\/css\/widget-nav-menu.min.css\">\t\t\t<nav migration_allowed=\"1\" migrated=\"0\" role=\"navigation\" class=\"elementor-nav-menu--main elementor-nav-menu__container elementor-nav-menu--layout-horizontal e--pointer-underline e--animation-fade\">\n\t\t\t\t<ul id=\"menu-1-d303989\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-54984\"><a target=\"_blank\" rel=\"noopener\" href=\"https:\/\/mudrex.com\/blog\/category\/market-update\/\" class=\"elementor-item\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-67234\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\">Product Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-68471\"><a href=\"https:\/\/mudrex.com\/blog\/category\/people\/\" class=\"elementor-item\">People Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-69129\"><a href=\"https:\/\/mudrex.com\/blog\/category\/founders-desk\/\" class=\"elementor-item\">Founders desk<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t\t<div class=\"elementor-menu-toggle\" role=\"button\" tabindex=\"0\" aria-label=\"Menu Toggle\" aria-expanded=\"false\">\n\t\t\t<i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--open eicon-menu-bar\"><\/i><i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--close eicon-close\"><\/i>\t\t\t<span class=\"elementor-screen-only\">Menu<\/span>\n\t\t<\/div>\n\t\t\t<nav class=\"elementor-nav-menu--dropdown elementor-nav-menu__container\" role=\"navigation\" aria-hidden=\"true\">\n\t\t\t\t<ul id=\"menu-2-d303989\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-54984\"><a target=\"_blank\" rel=\"noopener\" href=\"https:\/\/mudrex.com\/blog\/category\/market-update\/\" class=\"elementor-item\" tabindex=\"-1\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-67234\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\" tabindex=\"-1\">Product Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-68471\"><a href=\"https:\/\/mudrex.com\/blog\/category\/people\/\" class=\"elementor-item\" tabindex=\"-1\">People Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-69129\"><a href=\"https:\/\/mudrex.com\/blog\/category\/founders-desk\/\" class=\"elementor-item\" tabindex=\"-1\">Founders desk<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3c2731a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3c2731a\" data-element_type=\"section\" id=\"navigation-sample-sec2\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e72f7ca\" data-id=\"e72f7ca\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9c86048 elementor-nav-menu--dropdown-mobile elementor-hidden-desktop elementor-hidden-tablet elementor-nav-menu__text-align-aside elementor-nav-menu--toggle elementor-nav-menu--burger elementor-widget elementor-widget-nav-menu\" data-id=\"9c86048\" data-element_type=\"widget\" id=\"nav-vategory-menu\" data-settings=\"{&quot;layout&quot;:&quot;horizontal&quot;,&quot;submenu_icon&quot;:{&quot;value&quot;:&quot;&lt;i class=\\&quot;fas fa-caret-down\\&quot;&gt;&lt;\\\/i&gt;&quot;,&quot;library&quot;:&quot;fa-solid&quot;},&quot;toggle&quot;:&quot;burger&quot;}\" data-widget_type=\"nav-menu.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<nav migration_allowed=\"1\" migrated=\"0\" role=\"navigation\" class=\"elementor-nav-menu--main elementor-nav-menu__container elementor-nav-menu--layout-horizontal e--pointer-underline e--animation-fade\">\n\t\t\t\t<ul id=\"menu-1-9c86048\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-61588\"><a href=\"https:\/\/mudrex.com\/blog\/glossary\/\" class=\"elementor-item\">Glossary<\/a><\/li>\n<li class=\"newsletter-bottom-sample menu-item menu-item-type-custom menu-item-object-custom menu-item-61589\"><a href=\"#newsletter-redirects\" class=\"elementor-item elementor-item-anchor\">Newsletter<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61584\"><a href=\"https:\/\/mudrex.com\/blog\/how-to-crypto\/\" class=\"elementor-item\">How to Crypto<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61585\"><a href=\"https:\/\/mudrex.com\/blog\/blockchain-crypto-basics\/\" class=\"elementor-item\">Blockchain &#038; Crypto Basics<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61586\"><a href=\"https:\/\/mudrex.com\/blog\/investment-guide\/\" class=\"elementor-item\">Investment Guides<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61587\"><a href=\"https:\/\/mudrex.com\/blog\/market-update\/\" class=\"elementor-item\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-70587\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\">Product-updates<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t\t<div class=\"elementor-menu-toggle\" role=\"button\" tabindex=\"0\" aria-label=\"Menu Toggle\" aria-expanded=\"false\">\n\t\t\t<i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--open eicon-menu-bar\"><\/i><i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--close eicon-close\"><\/i>\t\t\t<span class=\"elementor-screen-only\">Menu<\/span>\n\t\t<\/div>\n\t\t\t<nav class=\"elementor-nav-menu--dropdown elementor-nav-menu__container\" role=\"navigation\" aria-hidden=\"true\">\n\t\t\t\t<ul id=\"menu-2-9c86048\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-61588\"><a href=\"https:\/\/mudrex.com\/blog\/glossary\/\" class=\"elementor-item\" tabindex=\"-1\">Glossary<\/a><\/li>\n<li class=\"newsletter-bottom-sample menu-item menu-item-type-custom menu-item-object-custom menu-item-61589\"><a href=\"#newsletter-redirects\" class=\"elementor-item elementor-item-anchor\" tabindex=\"-1\">Newsletter<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61584\"><a href=\"https:\/\/mudrex.com\/blog\/how-to-crypto\/\" class=\"elementor-item\" tabindex=\"-1\">How to Crypto<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61585\"><a href=\"https:\/\/mudrex.com\/blog\/blockchain-crypto-basics\/\" class=\"elementor-item\" tabindex=\"-1\">Blockchain &#038; Crypto Basics<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61586\"><a href=\"https:\/\/mudrex.com\/blog\/investment-guide\/\" class=\"elementor-item\" tabindex=\"-1\">Investment Guides<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61587\"><a href=\"https:\/\/mudrex.com\/blog\/market-update\/\" class=\"elementor-item\" tabindex=\"-1\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-70587\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\" tabindex=\"-1\">Product-updates<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-622a9df elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"622a9df\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e72dd12\" data-id=\"e72dd12\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-68e8c7b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"68e8c7b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3513f93\" data-id=\"3513f93\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-eac81f6 elementor-widget elementor-widget-heading\" data-id=\"eac81f6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.18.0 - 20-12-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Hard Peg<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1bafcd8 elementor-widget elementor-widget-text-editor\" data-id=\"1bafcd8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.18.0 - 20-12-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;The exchange rate policy where a fixed rate of one currency is set against another is known as the hard peg. For example, the Indian Rupee was pegged to the US dollar at a fixed rate of 80 INR per dollar. Whenever a currency is pegged to another currency, it implies that there shall arise a fluctuation in the price of the currencies concerning others in the same ratio. \\n\\nOnly a certain amount of movement is allowed by the hard peg concerning the pegged currency, which then creates what is known as a band. The exchange rate for currencies is often fixed but eventually, they are allowed to float freely in the market dictated by several market conditions. This happens when the government of one currency no longer wishes to continue the pegging due to several geopolitical or economic reasons. \\n\\nIn the case of crypto, stablecoins are generally pegged to fiat currencies. Tether, for example, has its value pegged to the US dollar. The major advantage of hard pegs is that they are transparent or simple.&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:4525,&quot;3&quot;:{&quot;1&quot;:0},&quot;5&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;6&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri&quot;}\">The exchange rate policy where a fixed rate of one currency is set against another is known as the hard peg. For example, the Indian Rupee was pegged to the US dollar at a fixed rate of 80 INR per dollar. Whenever a currency is pegged to another currency, it implies that there shall arise a fluctuation in the price of the currencies concerning others in the same ratio. <br \/><br \/>Only a certain amount of movement is allowed by the hard peg concerning the pegged currency, which then creates what is known as a band. The exchange rate for currencies is often fixed but eventually, they are allowed to float freely in the market dictated by several market conditions. This happens when the government of one currency no longer wishes to continue the pegging due to several geopolitical or economic reasons. <br \/><br \/>In the case of crypto, stablecoins are generally pegged to fiat currencies. Tether, for example, has its value pegged to the US dollar. The major advantage of hard pegs is that they are transparent or simple.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Hard Peg The exchange rate policy where a fixed rate of one currency is set against another is known as the hard peg. For example, the Indian Rupee was pegged to the US dollar at a fixed rate of 80 INR per dollar. Whenever a currency is pegged to another currency, it implies that there [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":61790,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_eb_attr":"","footnotes":""},"_links":{"self":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/64264"}],"collection":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/comments?post=64264"}],"version-history":[{"count":5,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/64264\/revisions"}],"predecessor-version":[{"id":65011,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/64264\/revisions\/65011"}],"up":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/61790"}],"wp:attachment":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/media?parent=64264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}