In public finance, 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. In colonial administration, currency boards were popular because of the advantages of printing appropriate …

Asian financial crisis and US dollar currency peg (1997–2005) Between 1995 and 1997, the ringgit was trading as a free float currency at around 2.50 to the US dollar, but following the onset of the 1997 Asian financial crisis, the ringgit witnessed major dips to under 3.80 MYR/USD by the end of 1997 as a result of capital flight.

The Convertibility plan was a plan by the Argentine Currency Board that pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth.While it initially met with considerable success, the board's actions ultimately failed. In contrast to what most people think, this peg actually did not exist, except …

Currency substitution is the use of a foreign currency in parallel to or instead of a domestic currency. The process is also known as dollarization or euroization when the foreign currency is the dollar or the euro, respectively.. Currency substitution can be full or partial. Full currency substitution can occur after a major economic crisis, such as in Ecuador, El Salvador, and …

A fixed exchange rate, often called a pegged exchange rate, is a type of exchange rate regime in which a currency's value is fixed or pegged by a monetary authority against the value of another currency, a basket of other currencies, or another measure of value, such as gold.. There are benefits and risks to using a fixed exchange rate system. A fixed exchange rate is typically …

At the outbreak of World War I, the Egyptian pound used a sterling peg of one pound and sixpence sterling to one Egyptian pound (£1 sterling = LE 0.975, or LE 1 = £1/–/6 stg). Egypt remained part of the sterling area until 1962, when Egypt devalued slightly and switched to a peg to the United States dollar, at a rate of LE 1 = US$2.3. This ...

The value of the Icelandic krona dropped, and on 7 October 2008 the Icelandic Central Bank attempted to peg it at 131 against the euro. This peg was abandoned the next day. [11] The krona later dropped again and to 340 against the euro before trade in the currency was suspended [12] (by comparison, the rate at the start of 2008 was about 90 ...

The Canadian dollar (symbol: $; code: CAD; French: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style guides for distinction from other dollar-denominated currencies. It is divided into 100 cents (¢).. Owing to the image of a common loon …

A reserve currency (or anchor currency) is a foreign currency that is held in significant quantities by central banks or other monetary authorities as part of their foreign exchange reserves.The reserve currency can be used in international transactions, international investments and all aspects of the global economy. It is often considered a hard currency or …

Sterling (abbreviation: stg; ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound is the main unit of sterling, and the word "pound" is also used to refer to the British currency generally, often qualified in international contexts as the British pound or the pound sterling.. Sterling is the world's oldest currency that is still in use and that ...