page_title: Currency board
section_title: Examples in recent history
hierarchical_section_title: Currency board / Examples in recent history
caption_attribution_description: English: Foreign Currency uses and pegs, Russian ruble included
context_page_description: 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.
context_section_description: More than 70 countries have had currency boards. Currency boards were most widespread in the early and mid 20th century.
  Hong Kong operates a currency board (Hong Kong Monetary Authority), as does Bulgaria. Estonia had a currency board fixed to the Deutsche Mark from 1992 to 1999 when it switched to fixing to the Euro at par. The peg to the Euro was upheld until January 2011 with Estonia's adoption of the Euro. 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). Argentina abandoned its currency board in January 2002 after a severe recession. 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. However, Argentina's system was not an orthodox currency board, as it did not strictly follow currency board rules – a fact which many see as the true cause of its collapse. They argue that Argentina's monetary system was an inconsistent mixture of currency board and central banking elements.  It is also thought that the misunderstanding of the workings of the system by economists and policymakers contributed to the Argentine government's decision to devalue the peso in January 2002. The economy fell deeper into depression before a recovery began later in the year.
  The British Overseas Territories of Gibraltar, the Falkland Islands and St. Helena continue to operate currency boards, backing their locally printed currency notes with pound sterling reserves.
  A gold standard is a special case of a currency board where the value of the national currency is linked to the value of gold instead of a foreign currency.
caption: Worldwide official use of foreign currency or pegs.   US dollar users, including the United States   Currencies pegged to the US dollar   Euro users, including the Eurozone   Currencies pegged to the euro 
     Australian dollar users, including Australia   Indian rupee users and pegs, including India   New Zealand dollar users, including New Zealand   Pound sterling users and pegs, including the United Kingdom   Russian ruble users, including Russia   South African rand users (CMA, including South Africa) 
     Special drawing rights or other currency basket pegs   Three cases of a country using or pegging the currency of a neighbor
exif: {}