Currency Board
/ˈkʌrənsi bɔrd/
Definitions
- (n.) A monetary authority that issues a local currency fully backed by a foreign reserve currency, maintaining a fixed exchange rate.
The country's economic stability was maintained through a strict currency board arrangement.
Forms
- currency board
- currency boards
Related terms
See also
Commentary
Currency boards strictly limit monetary policy discretion by legally mandating full backing of local currency issuance, enhancing currency stability but reducing monetary flexibility.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.