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	Currency board - Wikipedia, the free encyclopedia
		A currency board is a monetary authority which is required to maintain an exchange rate with a foreign currency.
		Estonia established a currency board pegged to the Deutsche Mark in 1992 after gaining independence, and this policy is seen as a mainstay of that country's subsequent economic success (see Economy of Estonia for a detailed description of the Estonian currency board).
		To some, this emphasised the fact that currency boards are not irrevocable, and hence may be abandoned in the face of speculation by foreign exchange traders.
	en.wikipedia.org /wiki/Currency_board (480 words)

	Argentine Currency Board - Wikipedia, the free encyclopedia
		The Argentine Currency Board pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth.
		A currency board maintains absolute, unlimited convertibility between its notes and coins and the currency against which they are pegged, at a fixed rate of exchange, with no restrictions on current-account or capital-account transactions.
		The currency board was allowed to hold up to one-third of its dollar-denominated reserves in the form of bonds issued by the government of Argentina.
	en.wikipedia.org /wiki/Argentine_Currency_Board (2102 words)

	Finance & Development, December 1998 - Are Currency Boards a Cure for All Monetary Problems?
		Currency board arrangements, under which domestic currency can be issued only to the extent that it is fully covered by the central bank's holdings of foreign exchange, were long generally dismissed as throwbacks to the colonial era.
		Their importance should not be underestimated: although a currency board is a simple monetary arrangement, a range of important decisions must be made about its specific nature, including changes needed in the institutional framework for financial management in the economy and, especially, in the legal environment in which central banking is carried out.
		To that end, the currency board arrangement will have to publish a well-defined set of statistics (including, for instance, the balance sheet of the issue department or statistics on selected assets and liabilities included in that balance sheet) in a form, and according to a calendar, that are consistent with the currency board arrangement law.
	www.imf.org /external/pubs/ft/fandd/1998/12/enoch.htm (2692 words)

	FRBSF: Economic Letter - A Currency Board for Indonesia? (3/20/98)
		The cost of maintaining a currency board would be roughly equal to the spread between interest rates on domestic and foreign assets times the face value of foreign reserves which must be held to support the currency board.
		That implies that under a currency board, the central bank would not be able to act as lender of last resort in the event of a financial crisis in Indonesia; thus, the currency board restrictions on the central bank would further weaken an already fragile situation.
		Currency boards have been most successful in cases such as Argentina, where the credibility of domestic fiscal policy was initially in question.
	www.frbsf.org /econrsrch/wklyltr/wklyltr98/el98-09.html (1804 words)

	Currency Boards: An Idea Whose Time Has Come? (Site not responding. Last check: 2007-10-08)
		Currency board zealots were proselytizing in various former Soviet republics, including Kazakhstan and Ukraine, as well as in Jamaica and El Salvador.
		That means that a currency board (unlike a central bank) cannot function as "lender of last resort" either to the state treasury or to commercial banks.
		It is worth noting that a currency board's fixed exchange rate is very unlikely to be credible if it is perceived to be overvalued vis-a-vis the reserve currency either because it was set that way initially or subsequently became overvalued as a result of an inflation-induced real appreciation.
	www.cipe.org /publications/fs/ert/e15/guest.htm (2456 words)

	Currency - Wikipedia, the free encyclopedia
		Currencies can be classified as either floating currencies or fixed currencies based on their exchange rate regime.
		Currency evolved from two basic innovations: the use of counters to assure that shipments arrived with the same goods that were shipped, and the use of silver ingots to represent stored value in the form of grain.
		It was with Archimedes' principle that the next link in currency occurred: coins could now be easily tested for their fine weight of metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics).
	en.wikipedia.org /wiki/Currency (2713 words)

	Currency Boards Introduction
		A currency board is at bottom an arrangement that legislates a particular monetary rule: a rule that changes in the monetary base will be equal to the country's overall balance of payments surplus or deficit (that is, the sum of the current account and the capital account).
		Currency boards normally aim to hold a somewhat larger value of assets than the value of their liabilities in order to guard against the risk that the market value of their assets will diminish--for example, due to a rise in interest rates in the reserve-currency country.
		Unlike a pure currency board, commercial banks continued to be required to hold their reserves at the central bank, and the central bank remained responsible for bank supervision and for the health of the banking system.
	www.usd.edu /~kramakr/curr_iie_intro.htm (4049 words)

	Currency Board Homepage
		Under a currency board system, however, unlike the practice when a country has a central bank, the commercial banks may be allowed, or even required, to hold much or all of their reserves (other than vault cash) in the form of the reserve currency.
		A currency board is a monetary authority that issues notes and coins convertible into a foreign anchor currency or commodity (also called the reserve currency) at a truly fixed rate and on demand.
		The author concludes that currency boards may be quite attractive to small, open economies and a useful prop in those emerging from a very deep macroeconomic crisis, but that their disadvantages outweigh these attractions in most large countries.
	politics.ankara.edu.tr /~kibritci/curboard.html (2851 words)

	Argentine Currency Board: Facts and details from Encyclopedia Topic (Site not responding. Last check: 2007-10-08)
		A currency board's foreign currency reserves[Follow this hyperlink for a summary of this subject] must be sufficient to ensure that all holders of its notes and coins can convert them into the reserve currency reserve currency quick summary:
		A reserve currency is a currency which is held in significant quantities by other governments and institutions as part of their foreign exchange reserves....
		The currency board was allowed to hold up to one-third of its dollar-denominated reserves in the form of bonds[For more info, click on this link] issued by the government of Argentina.
	www.absoluteastronomy.com /encyclopedia/a/ar/argentine_currency_board.htm (4577 words)

	Argentina's Currency Crisis: Lessons for Asia - FRBSF Economic Letter (08/16/2002)
		Argentina maintained a currency board regime from April 1, 1991, through January 6, 2002, under which the Argentine peso was pegged one for one to the U.S. dollar.
		The currency board initially was allowed to hold as little as 66.6% of its assets in true foreign reserves.
		The currency arrangements proposed for Asian nations vary widely in intensity, ranging from regional insurance schemes aimed at forestalling future financial crises to agreements that could culminate in an Asian version of the EMU with a single currency for the region.
	www.frbsf.org /publications/economics/letter/2002/el2002-25.html (2060 words)

	Who needs a currency board? (Site not responding. Last check: 2007-10-08)
		Currency boards are worth considering in any country where the national currency has not performed as well in the long term as the major internationally traded
		Official dollarization (using a foreign currency as predominant or exclusive legal tender) and an orthodox currency board are quite similar.
		The main advantage of a currency board over dollarization is that a currency board retains seigniorage domestically whereas dollarization does not under the current policies of the countries issuing the major international currencies, the most likely choices for countries interested in dollarizing.
	www.mtholyoke.edu /~taivanov/whoneedsit.html (316 words)

	What Is A Currency Board?
		With a currency board, a country's monetary policy is not influenced by the monetary authority's decisions (as is practice in a central banking system) but is determined by supply and demand.
		An orthodox currency board cannot try and manipulate interest rates by setting a discount rate, and, because a currency board does not lend to banks or the government, the only means a government has to raise needed money is through taxation or borrowing, not by printing more money (a major cause of inflation).
		Thus, the perception that the currency board would no longer function in an orthodox manner and the currency board's willingness to defend the local currency's peg (as opposed to its ability) were enough to put pressure on the HK dollar and send it tumbling.
	www.investopedia.com /articles/03/051503.asp (1196 words)

	Ministry of Finance
		The Brunei Currency Board (BCB) was established by the 1967 Currency Act in Chapter 32 of the Laws of Brunei.
		Prior to this date, The Board of Commissioners of Currency which was reconstituted under the Malaya British Borneo Currency Agreement 1960, was the sole currency issuing authority in Malaysia, the Republic of Singapore and Brunei Darussalam, which was then known as the State of Brunei.
		With the Board relinquishing its right to issue currency in the three countries, Bank Negara Malaysia, the Board of Commissioners of Currency, Singapore and the Brunei Currency Board replaced the Board on 12th June 1967, as the sole currency issuing authorities in Malaysia, the Republic of Singapore and the State of Brunei respectively.
	www.finance.gov.bn /bcb/bcb_index.htm (542 words)

	index2
		Introduction to Currency Boards - The essentials of currency boards.
		Currency Boards for Developing Countries: A Handbook - A fairly detailed work explaining the advantages and workings of a currency board system and how to establish, operate, and protect a currency board.
		Currency Board Bibliography - A comprehensive bibliography of works on currency boards up to mid 2001.
	users.erols.com /kurrency (783 words)

	[No title]
		Reduction of speculative attacks: Argentina, one of the largest countries to adopt a currency board, was able to withstand the ‘Tequila effect’ and prevent the collapse of its currency even after the Mexican peso fell.
		Arguments against a Currency Board System Weaken the country’s Banking System: CB arrangement prevents the monetary authority from increasing the Ms in a time of crisis; it limits the ability of the monetary authority to provide liquidity.
		May lead to overvaluation of a currency, reducing competitiveness: CB limits the ability of a country to adjust to a macroeconomic shocks by altering its exchange rate.
	online.sfsu.edu /~pgking/intfinpdf/natalia2.doc (1057 words)

	The Banknotes of the Iraq Currency Board
		The Iraq Currency Board was located in London and consisted of five members—two were appointed by the Government of Iraq, two were nominated by banks operating in Iraq, and one was to be selected by the League of Nations or the Bank of England.
		The Annual Reports of the Currency Board for the year ended 31 March 1943 record the issue of the 10- and 4-fils coins in bronze, instead of cupro-nickel, as the war effort had consumed all the nickel that had been reserved for the cupro-nickel alloy intended for the manufacture of coins.
		A number of years after the notes of the fourth issue were released, the Iraqi Currency Board reprinted the ¼- and ½-dinar notes with the same designs as the notes of the fourth series, except that the portrait of King Faisal II shows him at a later age.
	www.pjsymes.com.au /articles/Iraq-CB.htm (4831 words)

	Paul Byles and Maria Socorro Zingapan: Does a Currency Board Automatically Discipline Fiscal Policy? Cayman Islands
		A currency board is defined as a special case of a rules-based monetary regime characterized by "an explicit legislative commitment to exchange domestic currency for a specific foreign currency at a fixed rate, combined with restrictions on the issuing authorities - the currency board - to ensure fulfilment of its legal obligation" (IMF, 1997).
		Despite the merger, the independence of the currency board function was preserved as the Law mandated separation of its assets from the rest of the Authority.
		In summary, the foreign-currency denominated reserves of the Cayman currency board during 1992-2002 was approximately 126 percent of total demand liabilities.
	www.uwichill.edu.bb /bnccde/cayman/conference/papers/zingapan.html (5645 words)

	The Bank Notes of the Qatar and Dubai Currency Board
		The Qatar and Dubai Currency Board was responsible for issuing and managing the new currency, and for maintaining the external reserves which backed the currency.
		There were five directors of the Currency Board, with each state providing two directors, while the fifth director was to be an expert in banking and finance from a country outside the Gulf.
		On the reverse of each note the title of the Currency Board is written in English across the top of the note, with the denomination appearing in numerals in the centre and in the top two corners.
	www.pjsymes.com.au /articles/QatarDubai.htm (2531 words)

	Ministry of Finance (Site not responding. Last check: 2007-10-08)
		Being the customary tender in Brunei, the Singapore currency continued to circulate side by side with the Brunei currency.
		The amount of Brunei currency repatriated by the Board of Commissioners of Currency, Singapore excluding the amount held in their custody awaiting repatriation was $641.19 million, a decrease of 9.6% compared to year 2001.
		As required under the Sections 17 (1)(b) and (2)(b), Brunei Currency Board is to observe the statutory limits of the level of external assets and liquid assets i.e.
	www.finance.gov.bn /tt/EDITKKW/bcb/bcb_statistic.htm (172 words)

	HK Currency Board (Site not responding. Last check: 2007-10-08)
		The board helped to facilitate the economic growth in large part because Hong Kong is a highly free an externally oriented economy with a government which practices fiscal discipline.
		Among the advantages are assurance of currency convertibility at a predetermined rated of exchange, pressure to sustain macroeconomic discipline, and as a result of the first two, maintenance of confidence in the currency.
		While a currency board can guarantee backing of its currency, confidence in its currency is also a function of investors¡¯ and traders vies of its economic strength, soundness of its financial intermediaries, viability of its capital markets, and fiscal discipline of its government.
	website.lineone.net /~dennisshen/hkcurrency.htm (1850 words)

	Palestine Coins and Banknotes - Main Page
		The Currency Notes Ordinance 1927 was then passed in Palestine constituting as legal tender the currency that was to be issued by the Palestine Currency Board.
		The Palestine Currency Board, after consulting with the Mandatory government officials, decided that the coins should be in the denominations of 1 and 2 mils (bronze), 5, 10, and 20 mils (nickel-bronze with center hole), and 50 and 100 mils (silver with reeded, or milled edges).
		The Palestine Currency Board was appointed in 1926 by the British Secretary of State for the Colonies, and was in charge of the introduction and control of currency in Palestine under the British Mandate.
	www.drberlin.com /palestine (878 words)

	Johns Hopkins Gazette: March 24, 1997
		Hanke said that the year before the currency board was enacted, Argentina labored under a hyperinflation rate of 2,315 percent a year.
		The IMF made the currency board reforms one of the prerequisites for approving a package of $700 million in new loans to Bulgaria.
		Politicians tend not to like currency boards because they severely limit the government's ability to use monetary policy as a means of achieving fiscal objectives.
	www.jhu.edu /gazette/janmar97/mar2497/hanke.html (1046 words)

	Basis
		The stability of the currency board arrangement or the "value" of a commitment, even of a credible one, corresponds to or is equal to the country`s foreign reserves and depends at least on the country`s ex ante flexibility to reduce prices (including wages) [6] and the money-multiplier respectively it`s degree of underutilization.
		But such an orthodox currency board does not exist; therefore the usual distinction between a central bank with discretion, a rule-bounded central bank and a currency board (with a commitment as it`s main characteristic) is not a workable one.
		And this means, a currency board arrangement needs, additionally to the base-money supply rule, a publicly announced supply-rule for the creation of money out of domestic sources to improve the credibility of the currency board arrangement and to stabilize it.
	www.makrooekonomie.de /cbarran.html (1514 words)

	JORDAN CURRENCY
		The legal currency of the Hashemite Kingdom of Jordan is Jordan Dinar, commonly abbreviated JD.
		Prior to this, currency issues was controlled by two bodies : the Palestine Currency Board from 1927 to 1950, and Jordan Currency Board from 1950 to 1964.
		Under this act, the Jordan currency Board was formed, and become the sole authority entitled to issue currency notes and minted coins for the Kingdom.
	www.fortunecity.com /meltingpot/old/955/jordan.html (489 words)

	FRBSF: Economic Letter - Why Attack a Currency Board? (11/26/1999)
		This change was formalized in the "Currency Ordinance" of 1935, which set up a fund (unimaginatively called the Exchange Fund) to purchase silver from the public and then sell it in London in exchange for pound sterling.
		At this point it is important to emphasize that these steps toward discretion were the unintended consequences of well-meaning efforts to enhance the operation of the currency board.
		At the stroke of a pen the currency board's monetary base doubled, since the combination of the existing clearing balances and the outstanding stock of Exchange Fund paper roughly equals the outstanding stock of currency.
	www.frbsf.org /econrsrch/wklyltr/wklyltr99/el99-36.html (2174 words)

	History of Nigerian Currency
		The West African Currency Board was responsible for issuing currency notes in Nigeria from 1912 to 1959.
		On 1st July, 1959 the Central Bank of Nigeria issued the Nigerian currency notes and coins and the West African Currency Board notes and coins were withdrawn.
		On 31st March, 1971, the then Head of State announced that Nigeria would change to decimal currency as from 1st January, 1973.The major currency unit would be called Naira which would be equivalent to ten shillings: the minor unit would be called kobo; 100 of which would make one Naira.
	www.cenbank.org /currencymgt/history_currency.htm (504 words)

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