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Currency Market News

Our blog is below, to help you understand what's moving currency rates and affecting the cost of your international payments. For some friendly guidance on your own transactions, either for your business or yourself, simply fill in the form above and an FCA-regulated currency broker will be in touch to assist you, without any cost or obligation.

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Which currencies are pegged to the US Dollar
22 October 2014

For pegged currencies, there are two ways of establishing the value of currency on the international markets, the most commonly used is a fixed rate backed up by reserves, referred to as "baskets" or to peg their currency against the USD. This appeals to small countries such as: Barbados, Bahamas, Bermuda, Belize and Cuba and other nations around the gulf of Mexico as well as Africa the middle east and Asia. This connection is commonly known as "well managed". This is especially useful for smaller economies in which external trades forms a large part of their GDP as well as controlling inflation.  So as the reference value rises and falls so does the currency pegged to it.

Their governments have to hold large amounts of different foreign currency to reduce changes in supply and demand, if there were to be a sudden drive up in the exchange rate the bank would have to release enough of that currency to meet the demand. On the reverse if demand is low they buy up the currency lowering the exchange rates.

Here is a list of currencies pegged to the US Dollar:  

  1. Bermuda Dollar

  2. Dijibouti Franc

  3. Eritrea Nakfa

  4. Hong Kong Dollar

  5. Convertible Peso

  6. Panama Balboa

  7. Bahrain Dollar

  8. Jordan Dinar

  9. Lebanon Pound

  10. Oman Rial

  11. Qatar Riyal

  12. Saudi Arabia Riyal

  13. UAE Dirham

  14. Venezuela Boliver

Remember that they all move with the USD, so if the USD rate was to drop then so will all of the above. The same applies if the rate was to rise. So if you are looking to exchange any of the currencies listed keep a close eye on the movement and patters of the USD. To make an international payment in any of the above currencies or in US Dollars, you can fill in your details at the top of the page to request a quote from an FCA regulated broker in the UK.

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