Can a Country Run Without a Central Bank?

[Suba]

In a modern economy, every country is required to have a central bank, tasked with managing monetary policy and controlling the country's financial system to maintain economic stability. In addition to determining monetary policy, it also determines the payment system, the amount of money in circulation, and maintains the stability of a country's financial system.

If a country does not have a central bank, it cannot control inflation and other monetary policies. Therefore, a country without a central bank is more vulnerable to global economic fluctuations or crises. Not having a central bank also increases money laundering and corruption because the money circulating in a country is not controlled and supervised by the government.

 

[King Belieal]

I don't think there is any country that can run without a central bank. If not for anything, to regulate the activities in the entire banking sector.

 

[Springtime]

Hong Kong does not have a central bank. But we have Hong Kong Monetary Authority (HKMA) which performs similar functions.

 

[Starmix]

My country has a Central Bank that regulates the national treasury, banking transactions, OFWs, incoming and outgoing financial matters, solving financial crises due to inflation, and more.

 

[eLdavis]

Yes a country can run without a central bank, and many of them are able to achieve this by using a foreign currency. Benin Republic for example does not have a central bank.