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The four major types of international monetary regime are specie standard, managed fixed exchange rate, free float, and managed float. They differ in their solution, so to speak, of the impossible trinity.

Currency boards are an institutional arrangement to issue currency (notes and coins) against the full backing of a foreign currency in order to maintain the external value of the domestic currency. They were common in British colonial history, the first currency board being established in Mauritius in the 1840s.

A currency band is a range of upper and lower acceptable exchange rates for a national currency to fluctuate between. A currency band allows the currency to float between these two specified prices, but upon reaching those limits the currency price will switch to a fixed rate.

Real World Example of a Currency Board Hong Kong's currency board has a 100% reserve requirement, so all Hong Kong dollars are fully backed with U.S. dollars.1 While the currency board contributed to Hong Kong's trade with the U.S., it also worsened the impact of the 1997 Asian financial crisis.

Currency Board Arrangements. A monetary regime based on an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation.

Tablo 1. Typical currency boardTypical central bankCannot create inflationCan create inflationCannot finance spending by domestic governmentCan finance spending by domestic governmentRequires no ?preconditions? for monetaryRequires ?preconditions? for monetary reformRapid monetary reformSlow monetary reform12 more rows

On June 20, 2023, the BIS published ?The Blueprint for the Future Monetary System: improving the old, enabling the new.? This Unified Ledger system, if implemented, will accomplish their long-awaited goal: complete control of all global natural resources.