7 countries that don’t have a central bank

7 Countries That Don’t Have a Central Bank

Central banks typically manage a country’s money and stabilize its economy. However, some countries operate without a central bank by relying on foreign currencies or alternative systems. Here are seven such countries.

Andorra

Andorra does not have a central bank. It uses the Euro, which is managed by the European Central Bank. The economy largely depends on tourism and trade. By adopting the Euro, Andorra avoids managing its own monetary policy but cannot control interest rates.

Monaco

Monaco, a very small country, also lacks a central bank. It uses the Euro and depends on the European Central Bank. Monaco’s financial activities are overseen by private banks and influenced by France’s monetary policy, allowing it to specialize in banking and luxury industries.

Liechtenstein

Liechtenstein does not have its own central bank and uses the Swiss Franc, governed by the Swiss National Bank. Sharing currency with Switzerland means it follows Swiss monetary policy and focuses heavily on its financial services sector.

Palau

Palau, a small Pacific island nation, operates without a central bank and uses the US dollar as its currency. The stability of the US dollar supports Palau’s economy, while private banks handle banking services.

Tuvalu

Tuvalu, another small island country, has no central bank. It uses the Australian dollar alongside some local coins for domestic transactions.

“By using the Euro, Andorra avoids running its own monetary system but cannot set its own interest rates.”
“Monaco’s financial system functions through private banks and France’s monetary policy.”
“Liechtenstein focuses on a strong financial services sector.”
“The US dollar helps Palau by providing stability.”
“Tuvalu uses the Australian dollar and some Tuvaluan coins for local trade.”

Summary: Several small countries maintain economic stability without central banks by adopting foreign currencies and relying on private banking and external monetary policies.

more

WION WION — 2025-11-07

More News