A pegged exchange rate is precisely what Lebanon has maintained for more than 20 years, with no change to the peg since 1997. For better or for worse In the countries with pegged exchange rate regimes (exchange rate serving as the nominal anchor) it seems that interest rates were slightly more vulnerable to the unexpected demand shock. A currency peg is a country or government's exchange rate policy whereby it attaches, or links, the central bank's rate of exchange to another country's script. Also referred to as a fixed exchange rate or a pegged exchange rate, a currency peg stabilizes the exchange rate between countries. A pegged, or fixed system, is one in which the exchange rate is set and artificially maintained by the government. The rate will be pegged to some other country's dollar, usually the U.S. dollar. The rate will be pegged to some other country's dollar, usually the U.S. dollar.