Marshall Islands - Money



The Marshall Islands use the U.S. dollar as their currency. This has the advantages of not having the expense of running a central bank, the currency is completely convertible, and price stability is reasonably well ensured as the Marshallese do not have the ability to print currency. The rate of inflation has been in single digits in the period from 1993 to 1997, ranging from 4.8 percent to 9.6 percent. The only drawback for "dollarized" economies is that they do not earn the seigniorage (profit from the minting of coins) they would gain if they issued their own currency. The increasing number of countries that have been attracted to using the U.S. dollar in place of a domestic currency has caused the United States to consider sharing some of the seigniorage it earns as currency issuer.

Also read article about Marshall Islands from Wikipedia

User Contributions:

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Kekeiki
I want to now what kind of money do the marshallese have
Trying to learn of the currency used in the Marshall Islands prior to 1945 - Main interest is from 1930 to 1945. I am told it was the standard Japanese mainland yen- Or could it have been a special series or a partial series that was used in the islands? I hope someone will be kind enough to email me - So far several people have refused to reply to my many emails and a few that did reply said no idea what money was used then. Thank you. Robert Strike / rstrike@earthlink.net

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