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Depegging refers to the process of a currency or asset losing its fixed exchange rate or peg to another currency, commodity, or index. This can occur due to economic instability, changes in monetary policy, or market forces that lead to a divergence from the established peg. Depegging can significantly impact the financial markets, investor confidence, and the economy of the affected country or asset. It may result in increased volatility and uncertainty in the value of the depegged asset.
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