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Several countries have pegged their currency to another currency or a basket of currencies. Examples of countries with pegged currencies include Saudi Arabia (pegged to the US dollar), Hong Kong (pegged to the US dollar), and the United Arab Emirates (pegged to the International Monetary Fund's Special Drawing Rights).

In a soft peg exchange rate policy, the foreign exchange market usually determines a country's exchange rate, but the government sometimes intervenes to strengthen or weaken it. In a hard peg exchange rate policy, the government chooses an exchange rate. A central bank can intervene in exchange markets in two ways.

Conventional pegged arrangement. The country fixes its exchange rate to an anchor currency or basket within margins of less than ±1 percent.

OCC Bulletin 2013-29 This bulletin specifically addresses financial institutions' third-party relationships. In it, the OCC requires that banks, savings associations and even software providers assess and manage the risks tied to their third-party partners.

Pros of a Fixed/Pegged Rate Countries prefer a fixed exchange rate regime for the purposes of export and trade. By controlling its domestic currency a country can?and will more often than not?keep its exchange rate low. This helps to support the competitiveness of its goods as they are sold abroad.

A currency board does not attempt to manipulate interest rates by establishing a discount rate like a central bank. The peg with the foreign currency tends to keep interest rates and inflation very closely aligned to those in the country against whose currency the peg is fixed.

"The exchange rate used for FBAR reporting is the year-end spot rate."

President Lincoln recognized that unreliable paper money and inadequate credit was problematic. Along with his Treasury Secretary, Salmon P. Chase, he conceived the national banking system and the Office of the Comptroller of the Currency to regulate and supervise it.

The act had three objectives: to create a market for war bonds, to reestablish the central banking system destroyed during President Andrew Jackson's administration, and to develop a stable bank-note currency.

The Office of the Comptroller of the Currency (OCC) states, ?MRAs communicate specific supervisory concerns identified during examinations in writing to boards and management teams of regulated institutions. MRAs must receive timely and effective corrective action by bank management and follow-up by OCC examiners.?