A sovereign currency makes state insolvency in that currency impossible.
Evidence
A state that has its own sovereign currency has a big advantage: it can never become insolvent in its own currency. Similarly, a country that manages to set up a well-managed banking and financial system can finance important projects without having to resort to external financing. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 365
Categorization
- XREF: connects to: A sovereign-currency state can never become insolvent in its own currency; A sovereign currency makes a state incapable of defaulting on its own obligations; Legal currency ownership does not confer economic monetary sovereignty. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 364 (+2 more)
Related
- A sovereign-currency state can never become insolvent in its own currency (similarity 0.95)
- A sovereign currency makes a state incapable of defaulting on its own obligations (similarity 0.94)
- Legal currency ownership does not confer economic monetary sovereignty. (similarity 0.89)
- Currency issuance is inseparable from national sovereignty (similarity 0.88)
- Monetary sovereignty let Nigeria avoid IMF subordination where franc-zone states could not (similarity 0.88)
- No state with over 100 million people lacks its own national currency (similarity 0.84)
- Monetary sovereignty let Nigeria escape IMF where CEMAC states could not (similarity 0.82)
- Legal monetary sovereignty rarely yields true economic currency sovereignty (similarity 0.82)
- Monetary sovereignty is a precondition for capital accumulation and full employment (similarity 0.81)
- Only seven countries hold true monetary sovereignty today. (similarity 0.80)
- Leaving the CFA only to enter IMF tutelage is no improvement. (similarity 0.80)
- Only the modern nation-state can transform private debt into standard payment (similarity 0.80)
- Every state over 100 million people has its own national currency (similarity 0.79)