Currency Board


 

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Currency board

An extreme form of pegged exchange rate in which management of both the exchange rate and the money supply are taken away from the central bank and given to an agency with instructions to back every unit of circulating domestic currency with a specified amount of foreign currency. Operates similar to the gold standard.

Currency Board

Entity charged with maintaining the value of a local currency with respect to some other specified currency.



Currency Board

Similar Matches

Currency speculation

Currency speculation

To buy or sell a currency in anticipation of its appreciation or depreciation respectively, the intent being to make a profit or avoid a loss. See speculation.


Over-valued currency

Over-valued currency

The situation of a currency whose value on the exchange market is higher than is believed to be sustainable. This may be due to a pegged or managed rate that is above the market-clearing rate, or, under a floating rate, it may be due to speculative capital inflows. Contrasts with under-valued currency.


Currency appreciation

Currency appreciation

An increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates, a unit of one currency buys more units of another currency.


Common currency

Common currency

A currency that is shared by more than one country. Thus the currency of a currency area.


Currency selection

Currency selection

Asset allocation in which the investor chooses among investments denominated in different currencies.


Further Suggestions

Currency reserves
Multicurrency clause
Foreign currency mortgage
Soft currency
Foreign currency translation
Foreign currency option
Currency in circulation
Currency swap
Foreign currency futures contract
Currency devaluation
Optimal currency area
Currency
Currency diversification
Reporting currency
Foreign currency forward contract
Moscow Interbank Currency Exchange (MICEX)
Currency swap
currency loan
Net currency exposure
Currency call option
Base currency
Currency depreciation
Convertible currency
Currency risk sharing
European Currency Unit (ECU)


 
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