Currency Board


Currency Board

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

Currency Board

An agency of a government that determines the value of the domestic currency. Specifically, the currency board decides whether to peg the currency to another or to allow it to float. Theoretically, it may also peg the currency to the value of some commodity, such as gold, but that is exceedingly rare. In most developed countries, central banks perform the duties of currency boards. As separate entities, they are found mainly in developing countries.