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Only rich countries can afford to peg their currencies.



Even then, not a good idea for them, hence very few rich countries do it (unless they are very small).

Controlling interest rates is incredibly important, especially in times of crisis. If you were pegged to the USD right now (which is skyrocketing relative to most other currencies), you would be in trouble.


You can peg your currency down but you can't peg it up without external energy i.e. debt.




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