A problem with currency boards is that the central bank loses:

Question

Quizplus · Accepted Answer

Currency boards require a fixed exchange rate between the domestic currency and a reserve currency, which means that the central bank cannot adjust interest rates to achieve monetary policy objectives. This represents a loss of influence over interest rates. While currency boards can help to ensure price stability and fiscal discipline, they may also limit the ability of policymakers to respond to changing economic conditions.

A Problem with Currency Boards Is That the Central Bank