Estonia then established an exchange rate pegged to the German mark (DM) on 20 June 1992, and is now pegged to the euro. Lithuania, influenced by Estonia's success, however later the Bank of Lithuania steps in to replace the currency board-like system with a centralized banking system. To manage inflation and economic decline, Bulgaria adopted a currency board that was linked to the German mark and is now linked to the euro. In Argentina, for example, the minimum foreign exchange reserve rate is not 100%, as per an orthodox currency board, but 66%. percent. Although the actual ratio of foreign exchange reserves is around 90%, the legal freedom the central bank has to reduce foreign exchange reserves has sometimes created speculative attacks on the currency. Singapore had a currency board until 1973, but the Monetary Authority of Singapore has maintained a floating exchange rate ever since. evaluate. Although the Monetary Authority of Singapore holds net foreign reserves equal to approximately 100% of the monetary base. Advantages Disadvantages • The national currency increases only when foreign exchange reserves increase. • The monetary authority cannot use the money for government spending. • A currency committee solves the problem