Plain-English definitions for the terms you'll encounter on your financial journey.
A policy in which a national government sets a specific fixed exchange rate for its currency with a foreign currency or a basket of currencies.
A deliberate downward adjustment of a country's official exchange rate relative to another currency. This is usually performed by a central bank in a fixed exchange rate system.
A regime where the official value of a country's currency is pegged to another country's currency or to the price of gold. It is maintained by the central bank through market intervention.