UNPEGGING Meaning and
Definition
-
"Unpegging" refers to the act of discontinuing or removing a fixed exchange rate between two currencies, particularly when one currency is pegged to another. This term is commonly used in the context of international finance and monetary policy.
When two currencies are officially linked through a fixed exchange rate, the value of one currency is determined by its relationship to the other. The pegged currency is usually fixed to a more stable or widely used currency, such as the US dollar or the euro. This fixed rate is often maintained by central banks through various mechanisms, including buying or selling foreign currency reserves.
However, when a country decides to unpeg its currency, it means that it intends to allow its exchange rate to fluctuate freely in the foreign exchange market. This decision can be made for several reasons, such as wanting to achieve greater flexibility in monetary policy, responding to changes in economic conditions, or promoting competitiveness in the export sector.
Unpegging can have significant impacts on the domestic economy. It can lead to changes in inflation rates, interest rates, trade balances, and overall economic competitiveness. Additionally, unpegging may introduce greater uncertainty and volatility in exchange rates, which can affect international trade and investments.
Overall, "unpegging" is the act of abandoning a fixed exchange rate, allowing a currency to float freely in the foreign exchange market, and no longer maintaining a specific relationship to another currency.
Etymology of UNPEGGING
The word "unpegging" is formed by adding the prefix "un-" to the verb "peg".
The verb "peg" itself comes from the Middle English word "peggen", which meant to fasten or secure something with a peg. This Middle English term originated from the Old English word "pegge", which had a similar meaning. The exact roots of "pegge" are uncertain, but it may have been influenced by words from Old Norse or Old High German.
The addition of the prefix "un-" to "peg" forms the verb "unpeg", which means to remove or detach something that was fastened or secured with a peg. Consequently, "unpegging" refers to the action or process of unfastening or detaching.
Conjugate verb Unpegging
CONDITIONAL
I
would unpegging
you
would unpegging
he/she/it
would unpegging
we
would unpegging
they
would unpegging
CONDITIONAL CONTINUOUS
I
would be unpegging
you
would be unpegging
he/she/it
would be unpegging
we
would be unpegging
they
would be unpegging
CONDITIONAL PERFECT
I
would have unpegging
you
would have unpegging
he/she/it
would have unpegging
we
would have unpegging
they
would have unpegging
CONDITIONAL PERFECT CONTINUOUS
I
would have been unpegging
you
would have been unpegging
he/she/it
would have been unpegging
we
would have been unpegging
they
would have been unpegging
FUTURE
I
will unpeg
you
will unpeg
he/she/it
will unpeg
we
will unpeg
they
will unpeg
FUTURE CONTINUOUS
I
will be unpegging
you
will be unpegging
he/she/it
will be unpegging
we
will be unpegging
they
will be unpegging
FUTURE PERFECT
I
will have unpegged
you
will have unpegged
he/she/it
will have unpegged
we
will have unpegged
they
will have unpegged
FUTURE PERFECT CONTINUOUS
I
will have been unpegging
you
will have been unpegging
he/she/it
will have been unpegging
we
will have been unpegging
they
will have been unpegging
IMPERATIVE
you
unpeg
we
let´s unpeg
to unpeg
PAST
I
unpegged
you
unpegged
he/she/it
unpegged
we
unpegged
they
unpegged
PAST CONTINUOUS
I
was unpegging
you
were unpegging
he/she/it
was unpegging
we
were unpegging
they
were unpegging
PAST PARTICIPLE
unpegged
PAST PERFECT
I
had unpegged
you
had unpegged
he/she/it
had unpegged
we
had unpegged
they
had unpegged
PAST PERFECT CONTINUOUS
I
had been unpegging
you
had been unpegging
he/she/it
had been unpegging
we
had been unpegging
they
had been unpegging
PRESENT
I
unpeg
you
unpeg
he/she/it
unpegs
we
unpeg
they
unpeg
PRESENT CONTINUOUS
I
am unpegging
you
are unpegging
he/she/it
is unpegging
we
are unpegging
they
are unpegging
PRESENT PARTICIPLE
unpegging
PRESENT PERFECT
I
have unpegged
you
have unpegged
he/she/it
has unpegged
we
have unpegged
they
have unpegged
PRESENT PERFECT CONTINUOUS
I
have been unpegging
you
have been unpegging
he/she/it
has been unpegging
we
have been unpegging
they
have been unpegging
