Monetary sovereignty

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Monetary sovereignty is the power of the state to exercise exclusive legal control over its currency, broadly defined, by exercise of the following powers:

  • Legal tender – the exclusive authority to designate the legal tender forms of payment.[1]
  • Issuance and retirement – the exclusive authority to control the issuance and retirement of the legal tender.[2]

Incidence of monetary sovereignty[edit]

Currently, nations such as the USA and Japan, which have autonomous central banks exercise monetary sovereignty. On the other hand, the European Union nations within the Eurozone, have ceded much of their monetary sovereignty to the European Central Bank.[3]

References[edit]

  1. ^ Nzaou-Kongo, Aubin (2020). "International Law and Monetary Sovereignty: The Current Problems of the International Trusteeship of the Cfa Franc and the Crisis of Sovereign Equality". African Review of Law and Critical Thinking. 1 (1): 25–61. doi:10.6084/m9.figshare.12808835.v3. Retrieved 5 December 2020.
  2. ^ "The Legal Aspect of Money" by F.A. Mann, 5th edition, Oxford, 1992, pp. 460-78
  3. ^ Cohen, Benjamin J. (2000). The Geography of Money. Cornell University Press. pp. 47ff. ISBN 978-0801485138.