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No country has adopted a foreign currency to make their central bank impotent.
by shanghaiaway 8y ago
No country has adopted a foreign currency to make their central bank impotent.
- kirushik 8y agoSeems like at least Ecuador did: > The present currency of Ecuador is the United States dollar. https://en.wikipedia.org/wiki/Currency_of_Ecuador https://en.wikipedia.org/wiki/Currency_of_Ecuador
- pjc50 8y agoSeveral small countries have "dollarised". Ireland for decades ran an "independent" currency that had the same value as the pound and decimalised on the same day.
- Reason077 8y ago"No country has adopted a foreign currency to make their central bank impotent." There are a number of countries who's currencies are pegged to the US dollar at fixed exchange rates. Notably Hong Kong, as well as gulf states such as the UAE, Saudi Arabia, Qatar, etc. This means their central banks have very limited scope to control domestic money supply and interest rates via monetary policy.