Lex monetae

Lex monetae is a Latin phrase which means that a sovereign state chooses which currency it will use[1] and that the meaning of units of above-mentioned currency is determined by the law of the country whose money is in question.[2]

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.[3] 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.[4] In 2016, Jacques Sapir asserted that "public debt issued under French law (which corresponds to 97% of the amount of this debt) must be repayable in the currency that is legal tender in France".[5]

References
  1. "Eurozone". Eurocoins. Retrieved May 20, 2012.
  2. Garner, Bryan A. (2001). A Dictionary of Modern Legal Usage. Oxford University Press. p. 526. ISBN 9780195142365. Retrieved July 2, 2015. Lex monetae.
  3. "Multinationals sweep euros from accounts on daily basis". Telegraph. Retrieved May 20, 2012.
  4. "Lex Monetae". Morgan Stanley. Archived from the original on October 23, 2017. Retrieved May 20, 2012.
  5. "Lex Monetae et droit européen". RussEurope. Retrieved July 25, 2020..
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