Pegged exchange rate disadvantages
26 May 2017 of a pegged exchange rate is that it virtually eliminates exchange rate risk. Disadvantages are the loss of autonomy in domestic monetary policy disadvantage of floating exchange rates is that the uncertainty cf future In a fixed (or pegged) exchange-rate regime, an official increase in the value of a The currency board regime, under which the domestic currency is fully backed by international reserves, is the strongest form of pegged exchange rate option.