When a country attaches its exchange rate to a specific currency of another country, it’s called currency pegging, which is also called a fixed exchange rate. Many countries attach the value of their currency in a predetermined ratio to a more stable currency. Since the US dollar is the world’s most widely held reserve currency, it is not surprising that most currencies are pegged to it.
Over 66 countries are pegging their currencies to the US dollar. Oil-producing nations such as Oman, Saudi Arabia, and Qatar, whose major oil trading partner is the US, all peg their currencies to the US dollar to maintain stability. Countries that are big on tourism, such as the Caribbean nations, including Bermuda, Barbados, and the Bahamas, peg their currencies to the US dollar because tourism is mostly processed with it. China pegs its currency to the US dollar because most of its products are exported to the United States, hence preserving its competitive pricing. Countries that rely heavily on the financial industry, such as Singapore, Hongkong, and Malaysia, peg their currencies to the US dollar to keep their protection from the surprises and movements in the forex market. These and many more other countries attach their currencies to US dollars due to various reasons.
Next to the US dollar is euros. 25 countries are pegging their currencies to euros, and 17 eurozone members use it as their currency. Undeniably, these countries see the good in pegging currencies, that’s why they are doing it. However, one must also see the other side of the coin. Since their monetary policy is determined by another country, there is a huge foreign influence in their domestic affairs just like it was in the case of the attack in Sterling pounds in 1992, when Britain pegged its currency to the German Deutschemark. When Germany suffered from inflation, it increased the interest rate, thus the British pounds got severely hit since the Bank of England no longer had control over their own affairs. It had cost them £3.3 billion.
Further to this, currency pegging can allow a massive difference between a currency’s fundamental value and its market value, thereby causing a deviation as Central Banks artificially manipulate the value. Being pegged in exchanges has always been a threat to the independence of buyers and sellers. The new feature of the newest generation of digital market Virie leaves this threat behind forever. Virie Market does not allow such eventualities. It is not pegged to a specific national currency. Now you can exchange your goods directly with other network users. You can exchange them with Bitcoin, dollars, yen, pounds, Ethereum, Euro, Yuan, in fact, for anything. The value of currencies does not deviate since no Central Banks can manipulate any currency value at all. This greatly avoids any speculative currency attacks. Countries will have control over their domestic affairs, and there will be no exaggerated disequilibrium.
And not only goods for money. The Virie Market allows you to directly exchange anything you like for anything you want in just a few clicks. This new function is seamlessly integrated into a user-friendly and ergonomic interface, you won't have to play with it for long. Everything is intuitive. Enter what you want to buy with which currency, specify the period, and that's it. The system will help you find an exchange partner and make a transaction with just a couple of clicks. Everything you want for everything you want in any quantity and right now. Without currency pegging, Virie Market will be able to lead the way to a better and more successful global economy. Download it here and see for yourself.