Valutni odbor, prednosti i nedostaci

This paper analyses the currency board arrangement and its advantages and disadvantages. The currency board is monetary and foreign exchange institution that issues banknotes and coins that can be completely exchangeable for reserve currency at permanently fixed exchange rate. The paper provides a systematic overview of the exchange rate regimes and criteria for their choice. The differences between the traditional and modern currency boards have been explained, the features of the currency board are defined, with a special emphasis on the advantages and disadvantages, and a review of the reasons for selecting and installing a currency board is given as well as the condition of the countries before and after the use of the regime.