Part VI Monetary Unions and other Forms of Monetary Organization, 33 Other Forms of Monetary Organization

Subject(s):

Dollar — Foreign currency systems and institutions — International monetary conduct — Monetary system — Monetary obligations

This chapter explores other forms of monetary organization or arrangement which may have differing degrees of impact on the national monetary sovereignty of the States concerned. It begins by looking at international monetary institutions, the common organization of monetary systems, dollarization, exchange rate pegs, and currency boards. The chapter then considers monetary areas and monetary agreements. Monetary areas are characterized by the fact that restrictions on monetary transfers within the area are abolished, or much reduced. In other words, each of the States within the area maintains a system of exchange control, but applies this system less rigorously to countries which are fellow members of the monetary area. Meanwhile, monetary agreements are treaties or other arrangements which exclusively regulate monetary matters, but which do not seek to create a separate institution for that purpose. Such agreements either have an essentially political character or, otherwise, are of a highly technical nature. A third category of arrangements are of a purely ad hoc character.