currency board

currency board definition - finance
A method of controlling the value of a currency by rigidly fixing the currencyÂ’s value to a more widely used and dominant currency, often the British pound or the U.S. dollar. The local currency can be exchanged only for the dominant currency at the fixed exchange rates. Two countries that use currency boards are Hong Kong and Panama.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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