Some fear a repeat of the doomed struggle to keep Argentina's currency board afloat in 2000-01; or perhaps worse if one currency's collapse swamps others.
Its dollar peg, backed by a currency board, made perfect sense when the yuan was also tied to the greenback.
This measure is to ensure that the repo of Exchange Fund paper through the Discount Window does not involve any departure from the discipline of the currency board system.
A currency board may need to be set up, with a new currency probably pegged, at least at first, to the South African rand.
This is a mechanism identical to today's currency boards, which is why I say that a gold standard system is like a "currency board linked to gold.
