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.
- “钉” (dīng) consists of “钅” (jīn) and “丁” (dīng); the radical “钅” (jīn) is usually associated with metal-like material.
- “Exchange rate” (汇率 huì lǜ) as in “fixed exchange rate” (固定汇率 gù dìng huì lǜ).
- “制” (zhì) as in “system” (制度 zhì dù), “uniform” (制服 zhì fú), or “control” (管制 guǎn zhì).
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