Monetary sovereignty

Monetary sovereignty is the power of the state to exercise exclusive legal control over its currency and monetary policy. This includes the authority to designate a country's legal tender, control the money supply, set interest rates, and regulate financial institutions. Monetary sovereignty is crucial for national sovereignty, economic independence, and policy autonomy.

The degree of monetary sovereignty ranges widely from countries with high control over monetary systems to those who voluntarily gave up aspects to supranational organizations or adopted a foreign currency.

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