Pegged Currencies
Currently there are several currencies pegged to the euro, some with fluctuation bands around a central rate and others with no fluctuations allowed around the central rate. This can be seen as a safety measure, especially for currencies of areas with weak economies. The euro is seen as a stable currency, i.e., there are no dramatic appreciations or depreciations of its value that might suddenly damage the economy or harm trade. Thus it provides security to traders and people holding that currency.
In 2011 the Swiss franc was rapidly appreciating against the euro, harming its exports to the eurozone. In response, Switzerland implemented a cap to the Swiss franc's value. This was not so much a peg, as they were merely limiting its highest value and not its lowest.
| State |
Population |
Area |
Code |
National currency |
Central rate |
Pegged since |
Fluctuation band |
Formerly pegged to |
EMU |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Bosnia and Herzegovina | 70064590310000000004,590,310 | 700451129000000000051,129 km² | BAM | B&H convertible mark | 1.955830 | 19991 January 1999 | 0.00% | DEM (from 21 November 1995) | ||
| Bulgaria | 70067385367000000007,385,367 | 7005110910000000000110,910 km² | BGN | Bulgarian lev | 1.955830 | 19991 January 1999 | 0.00% | DEM (from 1997) | ||
| Comoros | 7005690948000000000690,948 | 70032170000000000002,170 km² | KMF | Comorian franc | 491.9678 | 19991 January 1999 | 0.00% | FRF (from 23 November 1979) | ||
| Denmark | 70065475791000000005,475,791 | 700443094000000000043,094 km² | DKK | Danish krone | 7.460380 | 19991 January 1999 | 2.25% | XEU | ERM2 | |
| Cape Verde | 7005499796000000000499,796 | 70034033000000000004,033 km² | CVE | Cape Verdean escudo | 110.2650 | 19991 January 1999 | 0.00% | PTE (from middle of 1998) | ||
| Latvia | 70062307000000000002,307,000 | 700464589000000000064,589 km² | LVL | Latvian lats | 0.702804 | 20051 January 2005 | 15.0% | ERM2 | ||
| Lithuania | 70063483972000000003,483,972 | 700465303000000000065,303 km² | LTL | Lithuanian litas | 3.452800 | 20022 February 2002 | 15.0% | US$ (from 1 April 1994) | ERM2 | |
| Morocco (inc. West Sahara) |
700733657259000000033,657,259 | 7005712550000000000712,550 km² | MAD | Moroccan dirham | ≈ 10.0 | 19991 January 1999 | – | |||
| São Tomé e Príncipe | 7005163000000000000163,000 | 70031001000000000001,001 km² | STD | São Tomé and Príncipe dobra | 24,500 | 20101 January 2010 | 0.00% | |||
| XOF currency union; Benin Burkina Faso Guinea-Bissau Ivory Coast Mali Niger Senegal Togo |
700770931986000000070,931,986 | 70063269077000000003,269,077 km² | XOF | West African CFA franc | 655.957 | 19991 January 1999 | 0.00% | FRF (from 17 October 1948) | ||
| XAF currency union; Cameroon Central African Republic Chad Republic of the Congo Equatorial Guinea Gabon |
700738750133000000038,750,133 | 70062757528000000002,757,528 km² | XAF | central African CFA franc | 655.9570 | 19991 January 1999 | 0.00% | FRF (from 17 October 1948) | ||
| XPF currency union; French Polynesia New Caledonia Wallis and Futuna |
7005520938000000000520,938 | 700419597000000000019,597 km² | XPF | CFP franc | 119.3317 | 19991 January 1999 | 0.00% | FRF (from 21 October 1949) |
The Bulgarian lev is pegged to the euro through a currency board. Lithuania joined ERM II on 28 June 2004, Latvia joined on 2 May 2005; these currencies had been pegged to the euro before joining ERM II. As part of ERM II, the currencies have a fluctuation band of ±15%. Denmark, however, has committed to a tighter fluctuation band of 2.25%.
Convertible mark is the currency of Bosnia and Herzegovina and it was fixed to 1 German mark when it was introduced on the basis of the Dayton agreement; consequently after introduction of the euro, the Convertible mark uses the German-mark-to-euro rate at 1.95583 BAM per euro.
Read more about this topic: International Status And Usage Of The Euro