Under a currency board, the central bank holds ________, so that the domestic currency is fully backed by the foreign exchange.

Name: Under a currency board, the central bank holds ________, so that the domestic currency is fully backed by the foreign exchange.
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Under a currency board system, the central bank holds foreign exchange reserves in order to fully back the domestic currency. This means that the currency board must exchange domestic currency for foreign currency at a fixed rate upon demand.

Under a Currency Board, the Central Bank Holds ________, So