Module 15 · Finance around the world
Same money, different rules around the world
How currencies, central banks and deposit insurance differ by country, why pegged currencies copy the Fed, and how to compare the protection of your savings.
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In this lesson
- Tell floating, shared, managed and pegged currencies apart, with real examples
- Explain why policy rates differ and why a pegged country's central bank follows the Fed
- Compare a policy rate with inflation to see the real rate
- Quote deposit insurance limits for several countries and apply the rule "per depositor, per bank"
Ana, 31, from Ljubljana has a job offer in Dubai. Her cousin Kenji lives in Tokyo and her friend Luana lives in São Paulo. All three save, but in different currencies and under different rules. What changes when you cross a border, and what stays the same?
Four kinds of currency
Countries organise their money in four main ways:
- Floating: the market sets the rate, as in a . The dollar, pound, yen and Brazilian real float.
- Shared: the euro is used by 21 countries and has no exchange rate between them.
- Managed: China’s renminbi trades within a band of ±2% around a daily central rate.
- Pegged: a fixes the rate to another currency. The UAE dirham is fixed at 3.6725 per US dollar, and the Saudi riyal at 3.75.
A pegged must follow the anchor country’s interest rates. On 16 September 2026 the US Federal Reserve raised its target range to 3.75–4.00%. The Central Bank of the UAE raised its base rate from 3.65% to 3.90%, effective the next day. The Saudi central bank raised its repo rate to 4.50%. Both moved by the same quarter point as the Fed.
Why policy rates differ
A central bank sets its to meet its goals for inflation and growth. Countries with high inflation usually have high rates. To compare rates fairly, subtract inflation to get the :
real rate ≈ policy rate − inflation
How much of your savings is protected
repays savers up to a limit if a bank fails. The limit is counted per depositor and per bank, and it covers deposits only.
| Place | Limit (2026) |
|---|---|
| Slovenia, EU | €100,000 per depositor per bank |
| United Kingdom | £120,000 per person per firm |
| United States | $250,000 per depositor per insured bank, by ownership category |
| Japan | ¥10 million plus interest; payment accounts that pay no interest are fully covered |
| India | ₹5 lakh, principal plus interest |
| China | ¥500,000 per depositor per bank |
| Brazil | R$250,000 per person per institution or group; R$1 million over four years |
Some Gulf countries have schemes that are new or less clear, so check your central bank’s website.
Check your understanding
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