Lex monetae

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Lex monetae is a latin phrase which means that a sovereign state chooses which currency it will use.[1] The concept has been identified as a potential problem if the Eurozone breaks up or a member state decides to leave it, since debts in euros may turn into debts owed in another currency.[2] Conversion would be at a rate determined by the nation in question, and no party to a contract or transaction will have the right to default on it.[3]

References[edit]

  1. ^ "Eurozone". Eurocoins. Retrieved May 20, 2012. 
  2. ^ "Multinationals sweep euros from accounts on daily basis". Telegraph. Retrieved May 20, 2012. 
  3. ^ "Lex Monetae". Morgan Stanley. Retrieved May 20, 2012.