Currency & Exchange
Exchange rate regime
An exchange rate regime is the system a country uses to manage its currency's value against others — a free float lets markets set the rate entirely, a hard peg fixes it to another currency or basket, and managed floats sit between the two with periodic central bank intervention. Hong Kong's dollar peg to the US dollar is a well-known hard peg.
Why it matters
Knowing a country's regime explains why its exchange-rate series looks smooth (a peg) or volatile (a float).
Also known as: currency regime, FX regime