(alsolocal currency)thecurrencythat is used in someone's owncountry:Theprimarygoalformonetarypolicyiskeepingthevalueof thedomesticcurrencystable.Astrongercurrencytypicallyreducesthepriceofimportsindomesticcurrencyterms.Compareforeign currency(Definition ofdomestic currencyfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofdomestic currency
domestic currencyIn practice, government bonds are treated as risk-free bonds, as governments can raise taxes or indeed print money to repay theirdomesticcurrencydebt.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.However, in some cases, intervention has also been aimed at avoiding quick appreciations ofdomesticcurrency.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.If a central bank runs out ofdomesticcurrencyto buy foreign reserves, it can always print more.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.First, the central bank conducts a nonsterilized intervention by buying (selling) foreign currency bonds usingdomesticcurrencythat it issues.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Non-sterilization will cause an expansion or contraction in the amount ofdomesticcurrencyin circulation, and hence directly affect inflation and monetary policy.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Thedomesticcurrencyremains perpetually exchangeable for the reserve currency at the fixed exchange rate.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.At the beginning of this process, the store-of-value function of thedomesticcurrencyis replaced by the foreign currency.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.When adopting a foreign currency as legal tender, a monetary authority needs to withdraw thedomesticcurrencyand give up future seigniorage revenue.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.The situation that most developing countries are not able to borrow abroad in theirdomesticcurrency is referred to original sin in economics literature.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Yet often the returns of the borrower's project will be in thedomesticcurrency.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/domestic-currency##
