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.

Use currency board in a sentence

The currency board was really cool and we were all really happy to have someone who knew how to explain to us how it worked.

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The currency board wanted a currency that was essentially pegged the United States of America dollar because of the stability.

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Because of the new changes with the currency board, Mark did not want to exchange his euros for US dollars after his vacation.

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