currency board definition
A country that introduces a currency board commits itself to converting its domestic currency on demand at a fixed EXCHANGE RATE. While the currency board regime ECB Convergence Report December. Digital Currency Definition Theoretically it may also peg the currency to the value of some commodity such as gold but that is exceedingly rare. . Everyone has the right to exchange any amount of money from the domestic currency into the anchor currency at the fixed exchange rate at any time. This system creates a fixed exchange rate and the board must maintain a significant amount of foreign reserves. An agency of a government that determines the value of the domestic currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target. The currency board is an exchange rate agreement whereby one country pegs its currency to that of another country. The Argentine Cur