Currency pegs refer to a fixed exchange rate system where a country’s currency is tied or “pegged” to another currency (like the U.S. dollar or the euro). This means the central bank of the pegged currency country will buy or sell its own currency to maintain the set exchange rate. In Forex, currency pegs can impact trading strategies since they reduce volatility and can provide stability. However, if market conditions shift dramatically, the country might face challenges maintaining the peg, leading to potential devaluation or revaluation. Examples of currency pegs include: • Hong Kong Dollar (HKD) pegged to the U.S. dollar. • Saudi Riyal (SAR) pegged to the U.S. dollar. While pegs help stabilize economies, they can limit a country’s monetary policy flexibility and expose it to external shocks. #firstdealofthenewyearFateema