The Crawling Peg Mid-rate (CPMR) is a term associated with exchange rate
regimes, particularly those utilizing a crawling peg system. In a crawling peg
system, a country's currency exchange rate is allowed to fluctuate within a
predetermined band or range, but the central bank intervenes periodically to
adjust the pegged exchange rate.
The CPMR refers to the central or reference exchange rate around which the currency is allowed to fluctuate. It serves as the midpoint or central point of the band within which the currency's value is allowed to move. The crawling peg system typically involves periodic adjustments to this mid-rate, which can be based on various factors such as inflation rates, economic performance, or external market conditions.
This mechanism allows for some flexibility in the exchange rate while still maintaining a degree of stability, as the central bank can adjust the mid-rate in response to changing economic conditions.