Bureau refers to an institution that issues “external reserve assets” that are freely convertible.
A currency board is a rigid and fixed system established by law with 100% support.
Under the currency board system, the currency is issued at an exchange rate of the local currency against a specified foreign currency, at which any amount of exchange with the public is completed with the specified foreign currency. The currency board requires that no domestic assets be held.
The currency Board does not accept deposits, and its holdings are all high-quality securities that are valued on the assets it reserves and that generate interest income.
Since the currency board has 100 percent external reserves, it is essentially equivalent to a foreign currency standard.
