A country with a currency board does not have control over its local interest rates.

Name: A country with a currency board does not have control over its local interest rates.
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Question

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A currency board system ties the value of a country's currency to another currency or a basket of currencies. This means that the domestic interest rates of the country will closely follow the interest rates of the currency to which it is tied. Therefore, the country will not have control over its local interest rates.

A Country with a Currency Board Does Not Have Control