Adjustable Peg , the exchange rate management policy pursued by some countries, when the national currency is largely pegged or even fixed against some major currency, such as the US dollar or Euro. However, from time to time, the national currency may fluctuate within a narrow interval. Periodic course adjustments can be periodically carried out in order to improve the country’s competitiveness in foreign markets.
After the adoption of the Bretton Woods system in 1944, most Western European countries pegged their currencies to the US dollar, which lasted until 1971.
The Chinese yuan was unofficially pegged to the US dollar from the mid-1990s to 2005 at a rate of approximately 8.3 per dollar. The course has been adjusted to approximately 6.85 yuan per US dollar since July 2008 after three years of appreciation.