currency board


Definition
An organization which is tasked with keeping the value of a currency level with another currency. This requires the maintenance of a certain exchange rate in respect to the other currency. A currency board often serves a similar function to a central bank, and is designed to remove the central bank from its discretionary role of adjusting money supply and interest rates. By using a currency board a country is no longer in control of its monetary policy.


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currency board is ...

... part of the Forex subject.

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