🌐 What Is IMF and World Bank Approved Local Currency?

 

Local currency refers to:

• Currency issued by a country’s own government

• Used for domestic transactions within that country

IMF and World Bank support the development of local currency systems through policies, technical assistance, and roadmaps for bond market creation. For example, according to the Guidance Note for Developing Government Local Currency Bond Markets, they help countries issue government bonds in local currency.

🚫 What Is Non-Exchangeable Currency?

Non-exchangeable currency refers to:

• Currency that cannot be converted internationally through any bank or exchange

• Cannot be used to send money to foreign bank accounts

• Typically seen in cases of economic sanctions, illegal currency policies, or unregulated digital currencies (e.g., some unlisted cryptocurrencies)

⚠️ Does IMF or World Bank Approve Such Currencies?

No. IMF and World Bank only support internationally recognized and legal currency systems:

• They work to ensure currency stability, convertibility, and financial transparency

• Non-exchangeable currencies generally fall outside their policy scope

📌 Examples:

• Digital currencies like Pi Network are not yet internationally exchangeable

• IMF or World Bank do not recognize such currencies as officially approved

✅ Important for You:

• If you use a currency that is not exchangeable through any bank, it cannot be used for international transactions or legal banking operations

• IMF and World Bank only support legal, convertible, and government-approved currency systems