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The system in which the country pegs its currency (e.g., Chinese yuan, Saudi Arabian riyal) at a fixed rate to a major currency or basket of currencies, while the exchange rate fluctuates within a narrow margin around a central rate is called a(n)

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michell96

The system described above refers to the Fixed Exchange Rate System.

What is the fixed exchange rate system?

The fixed exchange rate system is a term that refers to the exchange regime of a monetary unit whose value is adjusted according to the value of another reference currency such as the Dollar or the Euro.

According to the above, the currencies of different countries gain or lose value according to their change with respect to the reference currencies.

This system has become widespread in the world with the aim of facilitating trade and investment between countries with the reference currencies.

Learn more about currency in: https://brainly.com/question/13684639

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