What is what does pegged mean?

Pegged refers to the action of fixing or attaching a specific value or rate to something. This can apply to various contexts, such as financial markets where a currency is pegged to another currency or a commodity, or in manufacturing where components are pegged together to create a finished product. In currency terms, a pegged exchange rate refers to a system in which the value of one currency is fixed in relation to another currency, often used by countries to stabilize its exchange rate and maintain economic stability.