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 ?
During the following two decades, the number of currencies allowed to float increased, although in the late 1990s a number of European currencies were permanently fixed under Economic and Monetary Union and some other countries established currency boards.
Currency boards have existed in about 70 countries, and none have failed.
One foolproof way to do that is via gold-based currency boards. Currency boards have existed in more than 70 countries, and a number are in operation today.
Lot 2: French currency boards - they are rectangular panels of French motto Liberte, egalite, fraternite.
The three eastern European economies with currency boards would do better to focus on improving competitiveness than joining the euro, said Hanke, a professor at Johns Hopkins University and a senior fellow at the Cato Institute in Washington, in a phone interview from Baltimore yesterday.
(2002) "On Dollarization and Currency Boards: Error and Deception." Journal of Policy Reform 5 (4): 203-22.
The remaining papers look an regional and international issues, including currency boards, exchange rates, and the enlargement of the European Monetary Union.
Keywords: euroisation, dollarisation, euro, survey data, Bulgaria, currency boards
Second, practically, time inconsistency has existed in the real-world currency boards, many of which have departed from the 'orthodox' model one way or another to adapt to the changing economic environment.
Currency boards were essentially 'an invention of the British Empire' (Williamson 1995, p.
He finds currency boards that become in effect FBARs to be undesirable, arguing they work well "only when the exchange rate and associated monetary policy commitments are, in some sense, absolute" (p.
Currency boards are not a panacea, and while one could produce the stability required for Iraqi reconstruction, it would unlikely succeed indefinitely without reforms to increase competitiveness.