Crawling peg (爬行钉住汇率制)

Crawling peg (爬行钉住汇率制 páxíng dīng zhù huìlǜ zhì) refers to an exchange rate (汇率 huì lǜ) system (制度 zhì dù) in which a currency with a fixed (固定 gù dìng) exchange rate is allowed to fluctuate within the trading band.

Part 1: Breakdown of Words

• “Crawling” (爬行 páxíng) is used to describe the fluctuating situation which depends on other factors.
  • “爬” (pá) as in “mountain climbing” (爬山 pá shān), “ascend” (爬升 pá shēng), or “climb” (攀爬 pān pá).
  • “行” (xíng) as in “action/operation” (行动 xíng dòng), “behavior” (行为 xíng wéi), or “walk” (行走 xíng zǒu).
• “钉” (dīng) consists of “钅” (jīn) and “丁” (dīng); the radical “钅” (jīn) is usually associated with metal-like material.
  • “Screw” (螺丝钉 luó sī dīng).
  • “Earring” (耳钉 ěr dīng).
• “Exchange rate” (汇率 huì lǜ) as in “fixed exchange rate” (固定汇率 gù dìng huì lǜ).
  • “汇” (huì) as in “money transfer” (汇款 huì kuǎn), or “report” (汇报 huì bào).
  • “率” (lǜ) as in “probability” (概率 gài lǜ), or “ratio” (比率 bì lǜ).
• “制” (zhì) as in “system” (制度 zhì dù), “uniform” (制服 zhì fú), or “control” (管制 guǎn zhì).