A Monetary System is the set of policies, frameworks, and systems that is used by a country to provide money and to control the exchange of money. The Monetary Systems are: 1) the holders of money (currency and bank deposit) by individuals, businesses, and governmental units; 2) commercial banks (private or government-owned); 3) central banks, which have a monopoly on the issue of certain types of money, serve as the bankers for the central government.
Reference Definition by OECD: Agri Monetary System is until the introduction of the single currency on 1 January 1999, intervention support prices and payments under the Common Agricultural Policy (CAP) were set in ECUs and then converted into each country’s currency using special conversion rates called “green rates”. These rates were usually different from those established under the European Monetary System (EMS) and from those of the EU member states which are not members of the EMS.
Related Definitions in the Project: The Commercial Definitions
