A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target.
Read more about Currency Board: Features of "orthodox" Currency Boards, Consequences of Adopting A Fixed Exchange Rate As Prime Target, Pros and Cons, Examples in Recent History, Historical Examples
Famous quotes containing the words currency and/or board:
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)
“Midway the lake we took on board two manly-looking middle-aged men.... I talked with one of them, telling him that I had come all this distance partly to see where the white pine, the Eastern stuff of which our houses are built, grew, but that on this and a previous excursion into another part of Maine I had found it a scarce tree; and I asked him where I must look for it. With a smile, he answered that he could hardly tell me.”
—Henry David Thoreau (1817–1862)