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A fixed currency, less commonly called a '''pegged currency''', is a Currency that uses a Fixed Exchange Rate as its Exchange Rate Regime . In the modern world, fixed currencies form a minority of the world's currencies. Prior to the 1970s , the Bretton Woods System made fixed currencies the norm; however, in 1973 , the United States government abandoned the Gold Standard , so that the US Dollar was no longer a fixed currency, and most of the world's currencies followed suit. A fixed currency is contrasted with a Floating Currency . Fixing a currency represents a particular type of Monetary Policy . Most currencies with currently fixed exchange rates are pegged to either the U.S. dollar (the '' Dollar Standard '') or the Euro (the '' Euro Standard ''). |