Under a currency board system,a country commits itself to converting its currency on demand into another currency at a fixed exchange rate.

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Under a currency board system, a country pledges to maintain the exchange rate between its currency and another currency by holding reserves in that currency and being willing to exchange its own currency for the reserve currency at the established rate upon demand. This commitment ensures the stability of the exchange rate and reduces the risk of currency devaluation or inflation.

Under a Currency Board System,a Country Commits Itself to Converting