A crawling peg is:

Multiple Choice

• where the exchange rate remains within a narrow margin of 2 percent relative to a statistically identified trend for six months or more, and the exchange rate arrangement cannot be considered as floating.

• involves the confirmation of the country authorities de jure exchange rate arrangement.

• when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows.

• where the exchange rate is largely market determined without an ascertainable or predictable path for the rate.