The Combat with inflation in currency board system

Currency board system is a program to applying which combat of inflation. All of the countries applying of currency board system provided success. Currency board system is a monetary system with issue domestic currency that is exchanged for foreign exchange on demand at a fix exchange rate. Currency board cannot use monetary policy with tools of monetary poicy. The monetary bases increases only when the private and banking sectors sells foreign exchange to the board at a fixed rate to meet its demand for national currency and monetary base changes according to balance of payments. The goverment cannot monetize budget deficit under currency board system. Turkey started to discuss currency board system in 1994. Turkish Central Bank has been lost confidence because of political pressure and monetary and financial dicipline has not been provided. So, Turkey signed the Stand-By Arrangement with IMF in 2000. This arrangement contains semi currency board system.