Currency board

Currency board (货币委员会 huòbì wěiyuánhuì) refers to the monetary authority that has direct instructions to back the domestic currency in circulation with foreign currency, which usually exercises an extreme form of a pegged exchange rate.

• board (委员会 wěiyuánhuì) is often used to refer to a small group of authoritative or powerful people.

A currency board (货币发行局 huò bì fā xíng jú) refers to a type of monetary authority which is required to maintain a fixed exchange rate with a foreign currency (货币 huò bì) and functions as an extreme form of a pegged exchange rate. Board as in "board of directors" (董事局 dǒng shì jú, or 董事会 dǒng shì huì). Part 1: Breakdown of Words

• "Currency" (货币 huò bì) as in "cryptocurrency" (密码货币 mì mǎ huò bì), "digital currency" (电子货币 diàn zǐ huò bì), or "currency code" (货币代码 huò bì dài mǎ).
  • “货” (huò) as in "goods" (货品 huò pǐn), "shelf" (货架 huò jià), or "lorry" (货车 huò chē).
  • “币” (bì) as in "RMB" (人民币 rén mín bì), "Bitcoin" (比特币 bǐ tè bì), or "coin" (硬币 yìng bì).
• “发行” (fā xíng) derives from:
  • “发” (fā) as in "departure" (出发 chū fā), "development" (发展 fā zhǎn), or "discovery" (发现 fā xiàn).
  • “行” (xíng) as in "operation" (行动 xíng dòng), "behavior" (行为 xíng wéi), or "trip/route" (行程 xíng chéng).
• "Board" (局 jú) as in "board of directors" (董事局 dǒng shì jú, or 董事会 dǒng shì huì), "board of governors" (理事会 lǐ shì huì), or "board of health" (卫生局 wèi shēng jú).