Title: Top Exchange Rates Pegged to the U.S. Dollar
Headings: Top Exchange Rates Pegged to the U.S. Dollar
Top Exchange Rates Pegged to the U.S. Dollar
Key Takeaways
What Does Pegging Mean?
Bretton Woods Agreement
Fixed vs. Floating Currencies
Why Currencies Peg to the U.S. Dollar
Major Fixed Currencies
The Bottom Line
Article Sources

Content: While it does not officially peg the Chinese yuan to a basket of currencies that include the U.S. dollar, it does manage it through to benefit its manufacturing and export-driven economy. 5 ﻿
Major Fixed Currencies
Below is a list of some of the national economies and the corresponding rates that currently peg to the U.S. dollar as of October 2018. 6 ﻿
Country
Region
Currency Name
Code
Peg Rate
Rate Since
Bahrain
Middle East
Dollar
BHD
0.376
2001
Belize
Central America
Dollar
BZ$
2.00
1978
Cuba
Central America
Convertible Peso
CUC
1.000
2011
Djibouti
Africa
Franc
DJF
177.721
1973
Eritrea
Africa
Nakfa
ERN
15.000
2005
Hong Kong
Asia
Dollar
HKD
7.84
1998
Jordan
Middle East
Dinar
JOD
0.71
1995
Lebanon
Middle East
Pound
LBP
1507.5
1997
Oman
Middle East
Rial
OMR
0.385
1986
Panama
Central America
Balboa
PAB
1.000
1904
Qatar
Middle East
Riyal
QAR
3.64
2001
Saudi Arabia
Middle East
Riyal
SAR
3.75
2003
United Arab Emirates
Middle East
Dirham
AED
3.673
1997
Source: The World Bank
The Bottom Line
It makes sense for many small nations to fix their currency to the U.S. dollar, especially if the primary source of revenue comes in the form of the dollar. This pegged strategy helps stabilize and secure small economies which may otherwise be unable to withstand volatility. Conversely, large and growing economies will find it hard over time to maintain a fixed currency policy, which will eventually snowball into an outsized need to buy more and more dollars to maintain the proper ratio. Article Sources
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