Currency Board


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Currency Board

Entity charged with maintaining the value of a local currency with respect to some other specified currency.

Currency Board

An agency of a government that determines the value of the domestic currency. Specifically, the currency board decides whether to peg the currency to another or to allow it to float. Theoretically, it may also peg the currency to the value of some commodity, such as gold, but that is exceedingly rare. In most developed countries, central banks perform the duties of currency boards. As separate entities, they are found mainly in developing countries.
References in periodicals archive ?
Release date- 15082019 - Currency Board Sub-Committee held on 5 July 2019.
The Currency Board Account shows that the Monetary Base at the end of June 2019 was HK$1,634.5 billion, increased by HK$10.9 billion, or 0.7%, from the end of May 2019.
Second issue: Banknotes issued in 1972 under the supervision of Oman Currency Board (100 baisa, Quarter rial, Half rial, One rial, 5 rials, 10 rials)
"Second Issue: Banknotes issued in 1972 under the supervision of Oman Currency Board (100 Baisa, Quarter Rial, Half Rial, One Rial, 5 Rials, 10 Rials)." "Third Issue: Banknotes issued in 1976 under the supervision of the Central Bank of Oman (from 100 Baisa to 50 Rials)." "Fourth Issue: Banknotes issued in 1985 under the supervision of the Central Bank of Oman (from 100 Baisa to 50 Rials)." The replacement also includes Omani banknotes issued on November 1st, 1995.
As an institution whose core objectives and tasks are to achieve and maintain the stability of domestic currency within the Currency Board arrangement, the CBBH will continue its foreign exchange reserves investments policy whose priorities are monetary stability and portfolio security, stated the CBBH.
But the currency crisis of the late 1990s, and the failure of Argentina's currency board, led many economists to conclude that if not a currency union such as the euro, the best policy may be to have free-floating exchange rate (EconomicsAn A-Z Guide by Mathew Bishop, pages 111-112).
This can be done within 24 hours with the introduction of a currency board.
Nikolay Vassilev: There is no such case and problem for Bulgaria because we have a successful currency board for 22 years now, where we have a fixed exchange rate - we are ready for the eurozone.According to him, we expect to join the Eurozone waiting room in the coming year.
This is operated through a currency board, i.e., a FX regime in which both stocks and flows of the monetary base have to be fully backed by FX reserves, the report said.
Assessing the status and potential of the Bulgarian economy, Todorov, Durova, and Aleksandrov estimate the short-term and long-term effects of European Union funding of the economy; investigate the economic growth of the Bulgaria economy during the period of the Currency Board Arrangement; analyze the cyclical recurrences of the economy under a Currency Board Arrangement; and formulate recommendations on macroeconomic policies to help stimulate growth, minimize cyclical fluctuations, and maximize the benefits of European Union funds to Bulgaria.
A currency board is a monetary institution that only issues notes and coins.
The economist also called for the dollarization or the formation of a currency board for lasting stability.