ABSTRACT
For currencies of smaller countries, particularly ones where capital markets are not well developed it may make good sense not to have a freely traded market which can find its own level. Insufficient transactions, discontinuities and poor information may lead to a market which is difficult to manage effectively without distortion to the requirements of domestic policy. Furthermore such currencies usually play a much smaller role in the invoicing of trade. As a consequence it is not surprising that the largest single group of currencies shown in Table 8 .1 are those pegged to the dollar. The United States is the largest single trading country and the dollar is the most common currency of invoicing for trading countries not choosing to use their own currencies.
