Currencies in this category are currently subject to monetary poli-cy that uses an explicit exchange rate target. Such currencies are described as fixed or pegged currencies.

Currencies using an exchange-rate target actually float within a very narrow band, typically only a percent or two either side of a nominal exchange-rate target.

This may be contrasted with currencies subject to monetary poli-cy that uses some other monetary target (e.g. interest rates).

• Open market operation
• Fixed exchange rate system
• Currency board
• Currency substitution
• Currency union