Comment Re:And it gets worse! (Score 1) 210
Generally, when people say one currency is pegged to another, it indicates that the exchange rate has been set to a fixed ratio. Oman's currency is a good example. If you look at the historical rate, it's nearly flat, with little wiggles probably caused by oil price fluctuations. An even better one is the Cayman Island dollar, which has been worth exactly $1.20 for quite some time. Occasionally that changes by a penny, but only 5 times in 5 years.
It can work if your economy is on very solid footing. Most of the nations that do it (and succeed) are major oil exporters or financial hubs. Argentina tried it at a 1:1 rate when their economy wasn't solid. It went very poorly.