The choice between these two regimes is largely driven by considerations related to a country’s economic situation and policy objectives with each having its respective advantages over the other depending upon specific context. Conventional pegs provide greater flexibility for governments since they can adjust their own currencies’ values relative to other currencies in response to changes in the global economy whereas with currency boards it is very difficult for countries to pursue independent monetary policies due to strict regulations which limit their ability for intervention.
Both currency boards and conventional pegs have merits, depending on macroeconomic stability, political will, and current market trends. However, only one system may be the best for a specific situation, based on all factors taken into account.