www.dollarization.org
Preliminary version, May 2005
I welcome comments from knowledgeable readers. Should you have a suggested correction, please specify the source of
your information. I am most interested in information from primary sources, particularly laws and the reports of monetary authorities.
Copyright 2005 by Kurt Schuler. This paper may be printed out for personal use by individuals, but may not otherwise be
reproduced. In quotations or citations, please note that this is a preliminary version. As with all the writings on my Web
site, the material here reflects my personal views, which are not necessarily those of my employer, the U.S. Treasury.
Notes
So far the tables for Africa, Asia, and Australia/Pacific are finished, though they are subject to revision.
"Present" refers to 2005 in the tables of monetary authorities.
| Table. African countries that have had various types of monetary authorities |
| Systems with competitive issue of the monetary base
Free banking--Competitive issue by banks of notes (paper money) and deposits with few special regulations. Fixed exchange rate with gold, silver, or a foreign currency. Lesotho (1902-21), Malawi (1894-1940), Mauritius (1813-17, 1817-24*, 1824-5, 1832-49), Namibia (1915-61), South Africa (1837-1920, 1920-1*), Swaziland (1897-1921), Zambia (1906-40), Zimbabwe (1892-1940). Besides these episodes, there was also limited competition in Mozambique (1919-42*). Botswana (1897) and Nigeria (sometime 1899-1912) had episodes of note issue by a single bank either too brief or not extensive enough to usefully classify as free banking. |
| Free issue--Unusual system with neither an exchange rate target nor centralized control of the monetary base.
No cases. |
| Systems of usually monopolistic issue bound by rules
Dollarization--Official use of a currency issued in a foreign country as the sole or main legal tender. Fixed exchange rate. Algeria (1850-1), Botswana (1950-76), Cameroon (by 1910-1916, 1916-21*), Comoros (1885-1926), Egypt (1856-98), Equatorial Guinea (by 1905-69), Eritrea (about 1900-52), Ethiopia (1936-45), Gambia (1826-1902#, 1902-13), Ghana (1896-1913), Kenya (1896-8), Lesotho (1921-80, 1980-present*), Liberia (1880s-1985), Libya (1912-43, 1943-52*), Madagascar (1886-1926), Mauritius (1786-9#, 1790-2#, 1800-13#, 1825-32#), Mayotte (1976-98), Morocco (French) (1897-1907), Morocco (Spanish) (1800s-1969), Namibia (1906-14, 1914-15*, 1915, 1962-93), Nigeria (1891-1913), Réunion (1786-9#, 1790-2#, 1803-22#, 1835-8#), Saint Helena (late 1700s?-1976 [# except 1864-5 and around 1920]), Seychelles (1892-1903*, 1903-19 [# except 1892, 1911-15]), Sierra Leone (1816-1998#, 1898-1913), Somalia (1893?-1920#, 1920-50 for former Italian part; 1887-1951# for former British part), Sudan (1901-56*), Swaziland (1921-74, 1974-86*), Tanzania (Tanganyika 1916-20, Zanzibar 1893-1907), Togo (1904-14, 1914-22*), Tunisia (by 1873-1904), Uganda (1906-20), Western Sahara (1884-present) |
| Currency board--Typically a government monopoly issuer of notes and coins. Holds foreign reserves equal to 100 percent
or slightly more of its monetary liabilities. Allows unrestricted exchange of its own currency at a fixed exchange rate into
gold, silver, or a foreign currency.
East African Currency Board: Kenya (1920-56), Somalia (British) (1951-56), Tanzania (Tanganyika 1920-56, Zanzibar 1936-56), Uganda (1920-66); Eritrea and Ethiopia also used its currency when they were dollarized Southern Rhodesia Currency Board: Malawi (1940-56), Zambia (1940-56), Zimbabwe (1940-56) West African Currency Board: Gambia (1913-64), Ghana (1913-58), Nigeria (1913-59), Sierra Leone (1913-64); Liberia also used its currency part of the time it was dollarized Individual currency boards: Djibouti (1949-77), Kenya (1898-1920), Libya (1952-6), Mauritius (1934-67), Saint Helena (1976-present), Seychelles (1936-78), Swaziland (1974-9) |
| Currency board-like--Allows more activist monetary policy than a currency board. Pegged exchange rate with a foreign
currency, but foreign reserves can be below 100 percent.
East African Currency Board: Kenya (1956-66), Somalia (British) (1956-60), Tanzania (Tanganyika 1956-64, Zanzibar 1956-64, united Tanzania 1964-6), Uganda (1956-66) Mauritius Board of Commissioners of Currency: Mauritius (1849-1934), Seychelles (1892*, 1892-1903*#) Individual currency board-like systems: Djibouti (1977-present), Gambia (1964-71), Somalia (Italian) (1950-9), Sudan (1956-60). |
| Monetary institute--Typically allows still more activist monetary policy than a currency-like system board. Pegged
exchange rate with a foreign currency, and foreign reserves usually below 100 percent.
Banque de l'Algérie et de la Tunisie: Algeria (1946-62), Tunisia (1946-58) Institut d'Émission de l'Afrique Occidentale Française et du Togo: Benin (1955-9), Burkina Faso (1955-9), Côte d'Ivoire (1955-9), Guinea (1955-9), Mali (1955-9), Mauritania (1955-9), Niger (1955-9), Senegal (1955-9), Togo (1955-9) Institut d'Émission de l'Afrique Équatoriale Française et du Cameroun: Cameroon (1942-59), Central African Republic (1942-59), Chad (1942-59), Congo-Brazzaville (1942-59), Gabon (1942-59) Individual monetary institutes: Comoros (1975-81), Lesotho (1980-2*), Madagascar (1962-73), Mayotte (1975-6), Réunion (Institut d'Émission des Départements d'Outre-Mer) (1944-74), Seychelles (1978-82) |
| Private monopoly note issue--Government-granted monopoly of note issue to a private commercial bank. Pegged
exchange rate with the currency of the metropolitan country.
Banco Nacional Ultramarino: Angola (1865-1900*, 1901-21, 1921-6*), Cape Verde (1865-1974), Guinea-Bissau (1902-74), Mozambique (1877-1905*, 1905-74), São Tomé and Príncipe (1868-1974) Banque de l'Afrique Occidentale: Benin (1903-55), Burkina Faso (1942-55), Cameroon (1916-21*, 1921-40, 1940-2*), Central African Republic (1925?-40, 1940-2*), Chad (1925?-40, 1940-2*), Congo-Brazzaville (1925-40, 1940-2*), Côte d'Ivoire (1905-55), Gabon (1928-40, 1940-2*), Guinea (1902-55), Mali (1925-55), Mauritania (1855-1955), Niger (1942-55), Senegal (1855-1955), Togo (1914-22*, 1922-55) Banque de l'Algérie et de la Tunisie: Algeria (1851-1946), Tunisia (1904-46) Banque de Madagascar et des Comores: Comoros (1926-50), Madagascar (1926-50) Banque du Congo Belge: Burundi (1917-52), Congo-Kinshasa (1912-52), Rwanda (1917-52) Compagnie des Indes: Mauritius (1719-66), Réunion (1719-66) Individual banks: Djibouti (Banque de l'Indochine 1908-49), Ethiopia (Bank of Abyssinia 1906-31), Réunion (Banque de la Réunion 1853-1944), Tanzania (Tanganyika) (Deutsch-Ostafrikanische Bank 1905-16). Réunion (1824-35, 1838-53) also had successive private note-issuing banks that did not have monopoly privileges but were closest to that system; Somalia (Italian) (1893) and South Africa (Cape of Good Hope, 1792-95) had a similar episode. |
| Systems of monopolistic issue systems that by design or in practice allow for nearly complete discretion in
monetary policy
Central bank--Monopoly issuer of the monetary base (in this case, notes and coins, plus deposits at the central bank). Exchange rate can be fixed, pegged (intermediate), or floating. (Note that this category includes central banks that also had commercial banking functions, but that there is a separate category below for monobanks, which conduct commercial banking functions monopolistically in a centrally planned economy.) Banque Centrale des États de l'Afrique de l'Ouest (BCEAO): Benin (1959-present), Burkina Faso (1959-present), Côte d'Ivoire (1959-present), Guinea (1959-60), Guinea-Bissau (1997-present), Mali (1959-62, 1984-present), Mauritania (1959-73), Niger (1959-present), Senegal (1959-present), Togo (1959-present, with a nominal interlude 1963) Banque Centrale du Congo Belge et du Ruanda-Urundi: Burundi (1952-60), Congo-Kinshasa (1952-60), Rwanda (1952-60) Banque de Madagascar et des Comores: Comoros (1951-74), Madagascar (1951-62) Banque d'Émission du Rwanda et du Burundi: Burundi (1960-4), Rwanda (1960-4) Banque de France: Mayotte (1998-2001), Réunion (1975-2001) (in both cases alongside European Central Bank 1999-2001) Banque des États de l'Afrique Centrale (BEAC): Cameroon (1959-present), Central African Republic (1959-present), Chad (1959-present), Congo-Brazzaville (1959-present), Equatorial Guinea (1985-present), Gabon (1959-present) Bank of Rhodesia and Nyasaland: Malawi (1956-64), Zambia (1956-64), Zimbabwe (1956-64) Banque Ottomane Imperiale: Libya (1906-11) European Central Bank: Mayotte (1999-present), Réunion (1999-present) (in both cases alongside Banque de France 1999-2001) National Bank of Egypt / Central Bank of Egypt: Egypt (1898-present), Sudan (1901-56*) State Bank of Ethiopia / National Bank of Ethiopia: Eritrea (1952-76), Ethiopia (1931-6, 1945-76, 1994-present) Own central bank: Algeria (1963-8, 1990-present), Angola (1926-9*, 1929-76, 1991-present), Botswana (1976-present), Burundi (1964-present), Cape Verde (1974-5, 1993-present), Comoros (1981-present), Congo-Kinshasa (1964-present), Equatorial Guinea (1969-84), Eritrea (1997-present), Gambia (1971-present), Ghana (1958-present), Guinea (1960-2, 1985-present), Guinea-Bissau (1974-97), Kenya (1966-present), Lesotho (1982-present*), Liberia (1985-present), Libya (1956-present), Madagascar (1973-7, 1989-present), Malawi (1964-present), Mali (1962-84), Mauritania (1973-present), Mauritius (1967-present), Morocco (1907-present), Mozambique (1974-8, 1992-present), Namibia (1993-present), Nigeria (1959-present), Rwanda (1964-present), São Tomé and Príncipe (1974-6, 1992-present), Seychelles (1983-present), Sierra Leone (1964-present), Somalia (1959-present for former Italian part, 1960-present for former British part), South Africa (1921-present), Sudan (1960-70, 1975-present), Swaziland (1979-86*, 1986-present), Tanzania (1966-7, 1991-present), Togo (1963), Tunisia (1958-present), Uganda (1966-present), Zambia (1964-present), Zimbabwe (1964-present). Réunion (1823) had a government-owned bank that was not a central bank in the modern sense. |
| Government issue--Issue of notes directly by the government treasury rather than by a separate monetary authority such as
a central bank. Exchange rate can be fixed, pegged (intermediate), or floating.
Government of French Equatorial Africa: Cameroon (1940-2*), Central African Republic (1940-2*), Chad (1940-2*), Congo-Brazzaville (1940-2*), Gabon (1940-2*) Individual governments: Angola (1772-1865, 1865-1900*, 1921-9*), Congo-Kinshasa (1896-1912, 1960-4), Gambia (1820-6), Liberia (1838-1880s), Libya (1911-12), Mauritius (1766-85, 1790, 1792?-1800, 1817-24*), Mozambique (1854-77, 1877-1905*), Namibia (1914-15*), Réunion (1766-85, 1790, 1792?-1803), Saint Helena (1716-late 1700s?), Seychelles (1919-36), Sierra Leone (1791-1816), South Africa (1795-1902 in various provinces, 1920-1), Tanzania (Zanzibar) (1908-35) |
| Occupation currency--Issued by an invading military force. Often no set principles of issue. Exchange rate can be fixed,
pegged (intermediate), or floating.
Libya (1943-52*). |
| Monobank--In centrally planned economies, combines central and commercial banking functions in a monopolistic way.
The exchange rate is controlled; no true foreign-exchange market exists.
National Bank of Ethiopia: Eritrea (1976-93), Ethiopia (1976-94) Own monobank: Algeria (1968-90), Angola (1976-91), Cape Verde (1975-93), Guinea (1962-85), Madagascar (1977-89), Mozambique (1978-92), São Tomé and Príncipe (1976-92), Sudan (1970-5), Tanzania (1967-91). Possibly also Guinea-Bissau 1975-1986 and Somalia in the 1970s, but information is scarce. |
| Other systems
Coins only--No paper money used. (I apply this category only in special circumstances.) Cases are omitted because they are not really modern. |
| "Moneyless" economy--a centrally planned economic system where there is no circulating currency, no monetary base,
and no true foreign exchange market.
No cases. |
| Note: *System operated alongside another. #No commercial banks during period. Currency unions (official use of a
currency issued within a political union as the sole or main legal tender, with a fixed exchange rate): Eritrea (1952-97),
Libya (1906-11), Mayotte (1998-present), Réunion (1975-present), Seychelles (1892*, 1892-1903*#), Sudan (1901-56*).
Source: Country tables. |
| Table. Fifty years of depreciating currencies in Africa | |||
| Country | Anchor currency in 1953 | Exchange rate, units of local currency per anchor currency, end of September | |
| 1953 | 2003** | ||
| Algeria | French franc | 1 | 14.16 |
| Angola | Portuguese escudo | 1 | 336,000,000 |
| Benin | French franc* | 0.5 | 1 |
| Bostwana | South African pound | 1 | 0.65 |
| Burkina Faso | French franc* | 0.5 | 1 |
| Burundi | Belgian franc | 1 | 31.80 |
| Cameroon | French franc* | 0.5 | 1 |
| Cape Verde | Portuguese escudo* | 1 | 0.55 |
| Central African Republic | French franc* | 0.5 | 1 |
| Chad | French franc* | 0.5 | 1 |
| Comoros | French franc* | 0.5 | 0.75 |
| Congo-Brazzaville | French franc* | 0.5 | 1 |
| Congo-Kinshasa | Belgian franc | 1 | 2,800,000,000,000,000 |
| Côte d'Ivoire | French franc* | 0.5 | 1 |
| Djibouti | U.S. dollar* | 214.392 | 177.721 |
| Egypt | pound sterling | 0.975 | 10.30 |
| Equatorial Guinea | Spanish peseta | 1 | 15.56 |
| Eritrea | Ethiopian birr | 1 | 1.53 |
| Ethiopia | U.S. dollar | 2.48 | 8.85 |
| Gabon | French franc* | 1 | 2 |
| Gambia | pound sterling | 1 | 10.06 |
| Ghana | pound sterling | 1 | 7,395.1 |
| Guinea | French franc | 1 | 3,613.33 |
| Guinea-Bissau | Portuguese escudo | 1 | 212.67 |
| Kenya | pound sterling | 20 | 131.39 |
| Lesotho | South African pound* | 1 | 1 |
| Liberia | U.S. dollar | 1 | 49.00 |
| Libya | pound sterling | 1 | 2.04 |
| Madagascar | French franc | 1 | 21.80 |
| Malawi | pound sterling | 1 | 90.79 |
| Mali | French franc* | 0.5 | 2 |
| Mauritania | French franc | 1 | 4.82 |
| Mayotte | French franc* | 1 | 1 |
| Mauritius | pound sterling | 13.33 | 48.04 |
| Morocco | French franc | 1 | 1.67 |
| Mozambique | Portuguese escudo | 1 | 131.12 |
| Namibia | South African pound* | 1 | 1 |
| Niger | French franc* | 0.5 | 1 |
| Nigeria | pound sterling | 1 | 112.13 |
| Réunion | French franc* | 1 | 1 |
| Rwanda | Belgian franc | 1 | 15.83 |
| Saint Helena | pound sterling* | 1 | 1 |
| Sâo Tomé and Príncipe | Portuguese escudo | 1 | 50.07 |
| Senegal | French franc* | 0.5 | 1 |
| Seychelles | pound sterling | 13.33 | 8.68 |
| Sierra Leone | pound sterling | 1 | 1,608.84 |
| Somalia | pound sterling | 20 | 4,345.96 |
| South Africa | pound sterling | 1 | 5.96 |
| Sudan | pound sterling | 0.975 | 4,329.50 |
| Swaziland | South African pound* | 1 | 1 |
| Tanzania | pound sterling | 20 | 1,779.63 |
| Togo | French franc* | 0.5 | 1 |
| Tunisia | French franc | 1 | 2.26 |
| Uganda | pound sterling | 20 | 264,030 |
| Western Sahara | Spanish peseta | 1 | not meaningful |
| Zambia | pound sterling | 1 | 4,109.4 |
| Zimbabwe | pound sterling | 1 | 680.48 |
Notes: *This currency or (for the French franc and Portuguese escudo) its successor the euro was still the anchor currency as of 2003. **Adjusted for redenominations. Among the anchor currencies, the French franc was redenominated in 1960 so that 1 new franc = 100 old francs and the South African rand came into existence in 1962 at 2 South African rand = South African £1. Exchange rates for 2003 are expressed in terms of old units. Among the African currencies, many have been redenominated either as part of decimalization (in the case of many former British colonies) or to eliminate zeros. Sources: Schuler (2003) (1953 exchange rates); www.oanda.com and central bank Web sites (as basis for calculating 2003 exchange rates). | |||
| Table. Asian countries that have had various types of monetary authorities |
| Systems with competitive issue of the monetary base
Free banking--Competitive issue by banks of notes (paper money) and deposits with few special regulations. Fixed exchange rate with gold, silver, or a foreign currency. Bangladesh (1846-61 as part of India); Burma (1861 as part of India); China (995-1008?, mid 1100s-1160*, 1180-1203*, 1661?-1853, 1853-61*, 1861-1905, 1905-1928*); China-Hong Kong (1845-1935); China-Macau (1800s?-1944); India (1770-1861); Japan (about 1600-1630, 1630-1707*, 1707-30, 1730-1882*); Malaysia (1888-1909); Pakistan (1850s?-1861 as part of India); Philippines (1903-1943*); Singapore (1849-1899, 1899-1909*); Sri Lanka (1844-1855*, 1855-1884, 1885-1888*); Thailand (1888-1902, 1902-1909?*) |
| Free issue--Unusual system with neither a rigid exchange rate nor centralized control of the monetary base.
China-Hong Kong (1974-83) |
| Systems of usually monopolistic issue bound by rules
Dollarization--Official use of a currency issued in a foreign country as the sole or main legal tender. Fixed exchange rate. Afghanistan (early 1920s-1936*); Azerbaijan (1991-1992, 1992-1993*); Bahrain (1920-1965); Bangladesh (1947-1948 as part of Pakistan, 1971); Bhutan (1968-1974); Bhutan (1974-present*); British Indian Ocean Territory (1919-present); Brunei (1867-1942#, 1942-1943*#, 1945-1951); Cambodia (1978-1980); Cyprus (1880s-1914); Cyprus, Turkish Republic of Northern (1974-present); India-Pondicherry (1700-1877); Indonesia (1704-46#, 1794-1807); Iraq (1917-1932); Israel (1917-1927); Jordan (1917-1927); Kazakhstan (1991-1993); Kuwait (1942-1961, 1990-1991 during Iraqi occupation); Kyrgyz Republic (1991-1993); Lebanon (1918-1920); Malaysia (1849-1888, 1909-1937); Nepal (1937-1945, 1945-1963*); Oman (1948-1970); Pakistan (1947-1948); Qatar (1949-1966); Saudi Arabia (1918-1952); Singapore (1840-1849); Syria (1918-1920); Tajikistan (1991-1995); Turkmenistan (1991-1993); United Arab Emirates (1946-1966, 1966-1973 except in Dubai); Uzbekistan (1991-1993); Vietnam (1862-1876); Yemen, Southern (1894-1951); Yemen, North (1959-1964) |
| Currency board--Typically a government monopoly issuer of notes and coins. Holds foreign reserves equal to 100 percent
or slightly more of its monetary liabilities. Allows unrestricted exchange of its own currency at a fixed exchange rate into
gold, silver, or a foreign currency.
Board of Commissioners of Currency, Malaya (later Malaya and British Borneo): Brunei (1952-1967); Malaysia-Malaya (1938-1942, 1942-1943*, 1945-1959, 1959-1963*, 1963-1967*); Malaysia-Sarawak (1952-1965, 1965-1967*); Malaysia-Sabah (North Borneo) (1952-1965, 1965-1967*); Singapore (1938-1942, 1942-1943*, 1945-1967) East African Currency Board: Yemen, Southern (1951-1966) Palestine Currency Board: Israel (1927-48); Jordan (1927-1964) Qatar and Dubai Currency Board: Qatar (1966-1973); United Arab Emirates-Dubai (1966-1973) Individual currency boards: Bahrain (1965-1974); Brunei (1967-1976); Burma (1947-1952); China-Hong Kong (1925-1941, 1941-1943*, 1945-1972, 1983-1988); Cyprus (1928-1958 or 1959); Iraq (1932-1949); Kuwait (1961-1969); Malaysia-Sarawak (1927-1942, 1942-1943*, 1945-1951); Oman (1970-1975); Philippines (1903-1916*, 1923-1942, 1942-1943*, 1945-1949); Singapore (1899-1909*, 1909-by 1913, 1936-7, 1967-70); Sri Lanka (1885-8*, 1888-1950); Yemen, Southern (1965-1968); Yemen, North (1964-1967) |
| Currency board-like--Allows more activist monetary policy than a currency board. Pegged exchange rate with a foreign
currency, but foreign reserves can be below 100 percent.
East African Currency Board: Yemen, Southern (1956-1965) Individual currency board-like systems: Brunei (1976-present); China-Hong Kong (1972-1974, 1988-present borderline currency board/currency board-like); Cyprus (1958 or 1959-1963); Philippines (1916-1923*); Singapore (by 1913-1936) |
| Monetary institute--Typically allows still more activist monetary policy than a currency-like system board. Pegged
exchange rate with a foreign currency, and foreign reserves usually below 100 percent.
Institut d'Émission des États du Cambodge, du Laos et du Viêt-Nam: Cambodia (1952-1954); Laos (1952-1954); Vietnam, united (1952-1954); Vietnam, South (1955) Individual monetary institutes: China-Macau (1980?-89); United Arab Emirates (1973-1980); Yemen, Southern (1968-1969); Yemen, North (1968-71) |
| Private monopoly note issue--Government-granted monopoly of note issue to a private commercial bank. Pegged
exchange rate with the currency of the metropolitan country.
Banco Nacional Ultramarino: China-Macau (1944-1979?), India-Goa (1906-1961) Banque de l'Indochine: Cambodia (1891-1951); India-Pondicherry (1877-1954); Laos (1893-1951); Vietnam (1876-1946, 1946-1951*) Banque de Syrie et du Liban: Lebanon (1920-1964); Syria (1920-1956) Individual banks: China (1008?-1023); Indonesia (1828-1846, 1846-1861*, 1861-1942, 1942-1945*), Iran (de facto 1888-1889); Korea (1902-1909); Malaysia-Sabah (North Borneo) (1880s-1921); Philippines (1852-1903); Taiwan (1899-1946) |
| Systems of monopolistic issue that by design or in practice allow for nearly complete discretion in monetary policy
Central bank--Monopoly issuer of the monetary base (in this case, notes and coins, plus deposits at the central bank). Exchange rate can be fixed, pegged (intermediate), or floating. (Note that this category includes central banks that also had commercial banking functions, but that there is a separate category below for monobanks, which conduct commercial banking functions monopolistically in a centrally planned economy.) Banque Ottomane Impérial (Imperial Ottoman Bank, later called simply Ottoman Bank): Iraq (1890-1915, 1915-1917*); Israel (1892-1915, 1915-1917*); Jordan (1904-1915, 1915-1917*); Lebanon (1856-1915, 1915-1918*); Saudi Arabia (1912-1915, 1915-1918*); Syria (1875-1915, 1915-1918*), Turkey (1856-1876, 1876-80*, 1880-1915, 1915-1931*), Yemen, North (1912-1915, 1915-1918*) Reserve Bank of India: Bangladesh (1935-1947); Burma (1935-1942); Pakistan (1935-1947) State Bank of Pakistan: Bangladesh (1948-1971) Own central bank: Afghanistan (1939-1979, 1992?-1994?, 1994-2002*, 2002-present); Azerbaijan (1918-1920, 1992-1993*, 1994-present); Bahrain (1974-present); Bangladesh (1972-present); Bhutan (1983-present*); Burma (1952-1970, 1992-present); Cambodia (1955-1975, 1980-present); China (1928-1952*, 1983-present); Macau (1989-present); Cyprus (1963-present); India (1935-present); Indonesia (1945-51*, 1951-present); Iran (1889-present); Iraq (1949-present); Israel (1948-present); Japan (1882-present); Jordan (1964-present); Kazakhstan (1993-present); Korea, North (1945-1947); Korea, united and South (1909-present); Kuwait (1969-1990, 1991-present); Kyrgyz Republic (1993-present); Laos (1955-1976, 1988-present); Lebanon (1964-present); Malaysia (1967-present); Maldives (1981-present); Mongolia (1924-1930, 1991-present); Nepal (1956-1963*, 1963-present); Pakistan (1948-present); Philippines (1949-present); Qatar (1973-present); Saudi Arabia (1952-present); Singapore (1970-present); Sri Lanka (1950-present); Syria (1956-1966, 2000-present); Taiwan (1946-present); Tajikistan (1995-present); Thailand (1942-present); 1931-present; Turkmenistan (1993-present); United Arab Emirates (1980-present); Uzbekistan (1993-present); Vietnam, North (1954-1957) and united (1988-present); Vietnam, South (1955-1975); Yemen, North and united (1971-present) |
| Government issue--Issue of notes directly by the government treasury rather than by a separate monetary authority such as
a central bank.
Afghanistan (1919-early 1920s, early 1920s-1936*, 1936-1939); Bangladesh (1862-1935 as part of India); Bhutan (1974-1983*); Burma (1862-1935 as part of India, 1946-1947); China (1023-mid 1100s, mid 1100s-1160*, 1160-1180, 1180-1203*, 1203-about 1500, 1651-1661, 1853-1961*, 1905-1928*); China-Tibet (1913-1959) Cyprus (1876-1880s, 1914-1928), India (1862-1935); India-Goa (1883-1906); Indonesia (1703-1704, 1746-1794, 1807-1828, 1846-1861*, 1945-1951*); Iran (1294); Iraq (1915-1917* as part of Ottoman Empire); Israel ( 1915-17* as part of Ottoman Empire); Japan (1630-1707*, 1730-1882*); Jordan (1915-17* as part of Ottoman Empire); Korea (1279?-1368?, 1390-1392, 1401-1403, 1410-1537); Lebanon (1915-1918* as part of Ottoman Empire); Malaysia-Sarawak (1880-1927); Malaysia-Sabah (North Borneo) (1921-1942, 1942-1943*, 1945-1951); Maldives (1947-1981); Nepal (1945-1956*); Oman (1975-present); Pakistan (1862-1935 as part of India); Saudi Arabia (1915-1918* as part of Ottoman Empire); Sri Lanka (1785-1844, 1844-55*); Thailand (1853-later 1850s?, 1902-1909*, 1909?-1942); Turkey (1839-1856, 1876-1880*, 1915-1931*); Yemen, North (1915-1918* as part of Ottoman Empire) |
| Occupation currency--Issued by an invading military force. Often no set principles of issue.
Brunei (1942-1943*#, 1943-1945); Burma (1942-1946); China (1937-1945); China-Hong Kong (1941-1943*, 1943-1945); Indonesia (1942-1945*); Malaysia-Malaya (1942-1943*, 1943-1945); Malaysia-Sarawak (1942-1943*, 1943-1945); Malaysia-Sabah (North Borneo) (1942-1943*, 1943-1945); Philippines (1942-1943*, 1943-1945); Singapore (1942-1943*, 1943-1945) |
| Monobank--In centrally planned economies, combines central and commercial banking functions in a monopolistic way.
Afghanistan (1979-1992?); Azerbaijan (1920, 1923-1991); Burma (1970-1992); China (1952-1983); Korea, North (1947-present); Laos (1976-1988); Mongolia (1930-1991); Syria (1966-2000); Vietnam, North and later united (1957-1988); Yemen, Southern (1969-1999) |
| Other systems
Coins only--No paper money used. (I apply this category only in special circumstances.) [still to be filled in] |
| "Moneyless" economy--A centrally planned economy without true circulating currency.
Azerbaijan (1920-1921); Cambodia (1975-1978) |
| Notes: *System operated alongside another. #No commercial banks during period. The table omits certain country
subdivisions listed in the main text whose experience was less important historically; for instance, for India the princely
states are omitted although European colonies in India are included.
Source: Country tables. |
| Table. Countries in the Pacific that have had various types of monetary authorities |
| Systems with private issue of currency
Free banking--Competitive issue by banks of notes (paper money) and deposits with few special regulations. Fixed exchange rate with gold, silver, or a foreign currency. Australia (initially, New South Wales) (1817-1828*, 1828-1893, 1893-1910); Fiji (1973-1914); New Zealand (1840-1844, 1844-1845*, 1845-1850, 1956-1934); Papua New Guinea (Papua only, 1910*); Vanuatu (1880s-1894*, 1897-before 1908*, 1908-1980*) |
| Private monopoly note issue--Government-granted monopoly of note issue to a private commercial bank. Hard pegged
exchange rate with the currency of the metropolitan country.
Banco Nacional Ultramarino: East Timor (1912-1942, 1942-1943*, 1945-1975) Banque de l'Indochine: French Polynesia (1905-1967); New Caledonia (1888-1942, 1942-1945*, 1945-1967); Wallis and Futuna (1905-1967) Neu Guinea Compagnie: Marshall Islands (1888-1914, no bank branch); Micronesia (1900-1914, no bank branch); Nauru (1888-1914, no bank branch); 1900-1914 (no branch); Palau (1900-1914); Papua New Guinea (New Guinea only ) (1884-1914, 1914-1916*); Samoa (1900-1914, no branch) Individual banks: New Caledonia (1873-1877) |
| Free issue--Unusual system with neither a rigid exchange rate nor centralized control of the monetary base.
None |
| Monetary authorities that impose rigid exchange rates to constrain a government issuer (usually a monopolist)
Dollarization--Official use of a currency issued in a foreign country as the sole or main legal tender. Fixed exchange rate. American Samoa (1900-present, seemingly no bank until 1914); Christmas Island (1888-1942, 1945-present, no bank until probably at least the 1960s); Cocos (Keeling) Islands (1826-1955*, no bank, 1955-1984, seemingly no bank until partway through period); Cook Islands (1901-1987 [no bank until 1969], 1987-1995*, 1995-present); East Timor (1999-present); Guam (1899-present, no bank until 1954); Kiribati (1937-1941, 1943-present); Marshall Islands (1944-present, no bank until 1961); Micronesia (1944-present, no bank until after Second World War); Nauru (1914-1942, no bank for part of period, 1945-present, no bank until 1968); Niue (1901-present, no bank until 1988); Norfolk Island (1916-present); Northern Mariana Islands (1944-present, no bank until soon after Second World War); Palau (1945-present, no bank until 1961); Papua New Guinea (Papua only, 1910*, 1910-1975; New Guinea only, 1916-1942, 1945-1975); Pitcairn Islands (1814-present#); Samoa (1914-1921); Solomon Islands (1945-1977); Tokelau (1926-present#); Tuvalu (1937-present); Vanuatu (1880s-1894*, 1894-1897, 1897-before 1908,* before 1908-1908, 1908-1980*) |
| Currency board--Typically a government monopoly issuer of notes and coins. Holds foreign reserves equal to 100 percent
or slightly more of its monetary liabilities. Allows unrestricted exchange of its own currency at a fixed exchange rate into
gold, silver, or a foreign currency.
Board of Commissioners of Currency, Malaya (later Malaya and British Borneo): Individual currency boards: Cook Islands (1987-1989*), Fiji (1914-1973); French Polynesia? (1890s-1905); New Zealand (1850-1856); Samoa (1921-1959); Tonga (1936-1989) |
| Currency board-like--Allows more activist monetary policy than a currency board. Hard pegged exchange rate with a
foreign currency, but foreign reserves can be below 100 percent.
None |
| Monetary institute--Typically allows still more activist monetary policy than a currency-like system board. Hard pegged
exchange rate with a foreign currency, and foreign reserves usually below 100 percent.
Institut d'Émission d'Outre-Mer: French Polynesia (1967-present); New Caledonia (1967-present); Wallis and Futuna (1967-present) Individual monetary institutes: Australia (1920-1924); Samoa (1975-1984); Solomon Islands (1977-1983); Vanuatu (1967-1980*) |
| Monopolistic systems that by design or in practice allow for nearly complete discretion in monetary policy
Central bank--Monopoly issuer of the monetary base (in this case, notes and coins, plus deposits at the central bank). Exchange rate can be fixed, pegged (intermediate), or floating. (Note that this category includes central banks that also had commercial banking functions, but that there is a separate category below for monobanks, which conduct commercial banking functions monopolistically in a centrally planned economy.) Australia (1924-present); Cocos (Keeling) Islands (1984-present, as part of currency union); East Timor (1975-1999, as part of currency union); Fiji (1973-present); Marshall Islands (1914-1944, as part of currency union); Micronesia (1914-1944, as part of currency union); New Zealand (1934-present); Northern Mariana Islands (1914-1944, as part of currency union); Palau (1914-1945, as part of currency union); Papua New Guinea (1975-present); Samoa (19591975, 1984-present); Solomon Islands (1983-present); Vanuatu (1981-present) |
| Government issue--Issue of notes directly by the government treasury rather than by a separate monetary authority such as
a central bank.
Australia (initially, New South Wales) (1788-1817, 1817-1828*, 1893-1910*, 1910-1920); Cocos (Keeling) Islands (1826-1955*, no bank); Cook Islands 91989-1995*); Fiji (1867-1873, 1873-1914*); New Caledonia (1853-1873, 1877-1888, 1942-1945*), Papua New Guinea (New Guinea only, 1914-1916*); Solomon Islands (1916-1942; possibly a currency board); Tonga (1921-1936); Vanuatu 91941-1967) |
| Occupation currency--Issued by an invading military force. Often no set principles of issue.
Christmas Island (1942-1945); East Timor (1942-1943*, 1943-1945); Kiribati (1941-1943); Nauru (1942-1945); Papua New Guinea (New Guinea only, 1942-1945); Solomon Islands (1942-1945) |
| Monobank--In centrally planned economies, combines central and commercial banking functions in a monopolistic way.
None |
| Other systems
Coins only--No paper money used. (I apply this category only in special circumstances.) None |
| "Moneyless" economy--A centrally planned economy without true circulating currency.
None |
| Notes: *System operated alongside another. #No commercial banks during period. The table may omit certain country
subdivisions listed in the main text whose experience was less important historically. Unlike the case with other regions,
since the Pacific region includes so many small islands where banks were not established until relatively recently, the
dating of dollarization often begins before banking began.
Source: Country tables. |