Jade
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Wrong YET again.
What is fixed exchange rate? definition and meaning - Business Dictionary
I don't know where you got these weird ideas from. Every single definition on Earth shows that a Pegged exchange rate = Fixed exchange rate.
That is for the definition purpose. A fixed exchange rate is FIXED in a ideal world where there are no frictions. In a real world, Central banks would retain a degree of flexibility in a fixed exchange rate regime to absorb shocks. Let us say what happens when Dollar depreciates, so in this case the Peoples Bank of China can arrest the decline of Yuan by retaining the flexibility.
Let me ask you a question: Why is China is so vocal on using basket of foreign currencies as a reference?