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CRAWLING PEG Definition & Legal Meaning

Definition & Citations:

A FOREIGN EXCHANGE PEGGING process based on official CENTRAL BANK intervention activity that adjusts the value of the local currency through small preannounced changes or average target rates over a period of time. The crawling feature avoids sudden jumps or VOLATILITY characteristic of DEPRECIATION or DEVALUATION, but may still be difficult and expensive to maintain over the long term. See also MANAGED FOREIGN EXCHANGE RATE.

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