It was a relatively unstable period, both economically and politically, yet many Latin American countries tried to maintain pegged exchange rates to the US dollar. Consequently, they experienced frequent exchange rate crises as their pegs became untenable and collapsed.
3 / 11  BIS central bankers' speeches  With pegged rates, their monetary policy was being largely driven by US monetary policy, which often proved inappropriate for domestic circumstances. In contrast, Canada’s floating currency allowed our policy to deviate from US monetary policy as needed, and this contributed to our better economic performance.