Pegging

Pegging is controlling a country’s currency rate by tying it to another country’s currency or steering an asset’s price prior to option expiration. A country’s central bank, at times, will engage in open market operations to stabilize its currency by pegging, or fixing, it to another country’s, presumably stabler, currency. It can also refer to the practice of manipulating the price of an underlying asset, like a commodity, prior to option expiry.