But, as these investments bolster economic growth, increased tax revenues would imply more sustainable financing, as would local governments ability to leverage land markets and approach local currency debt markets.

The currency was in theory governed by a rules based Currency Board, which the British invented for their smaller colonies. It tied the local currency to the British Pound, giving local authorities no discretion in monetary policy.

It tied the local currency to the British Pound, giving local authorities no discretion in monetary policy.

Furthermore, reducing local government financing vehicles exposures is essential.

Another promising development is the growth of local currency bond markets.

It is also the name of the local currency (abbreviation GTQ).

Local currency government debt markets have performed fairly well during the crisis, while local currency corporate debt markets have played a more modest role as a vehicle for longer term finance.

Salaries are paid in local currency while allowances are paid in US dollars.

Local bond markets provide alternative sources of financing for companies and Governments, which avoid exchange rate risks inherent to foreign financing.

The local currency is the Falkland Islands pound, which is pegged to the British pound sterling.

Ironically, today s pain stems from one of the great successes that emerging economies have achieved the reduction of foreign currency funding in favor of local currency debt.

To finance local businesses, Chinese local governments use local government financing vehicles (LGFVs) to circumvent bans on direct borrowing. In Spain, housing and employment collapses have hammered revenue.

But, as local government debt grows, Chinese banks have begun to regard real estate and local financing platforms as a major credit risk.

Central Reserve Bank of Peru (BCR) recalled that the change of currency was due to the invasion of feeble Bolivian currency that, since 1840, entered the country through the Southern zone, thus provoking confusion with the local currency.

These markets have been insulated in part because most investment in real estate backed securities has come from local investors who often need to invest in local currency markets.

As a result, the volume of bank credits financing local investments increased six fold in 2009 alone.

Local currency bond markets could help to develop domestic investor bases and mobilize domestic savings to support long term investments.

For one thing, it is folly to think that more local currency debt eliminates the possibility of a financial crisis.

The exchange rate explains part, but not all, of the increase, since 13 countries actually increased contributions in local currency.

5. Recognizes that rural energy services, including their financing, should be designed to maximize local ownership, as appropriate

5. Recognizes that rural energy services, including their financing, should be designed to maximize local ownership, as appropriate

6. Recognizes that rural energy services, including their financing, should be designed to maximize local ownership, as appropriate

Some 18 Governments increased their contributions to regular resources in local currency and 14 increased by 7 per cent or more.

These markets can become a strong source of financing for longer term domestic investment, including in infrastructure, thereby reducing currency risk for borrowers and investors.

In most countries, such intervention would tend to push up inflation, because the central bank issues local currency in return for dollars.

All organizations whose expenditures, like those of the secretariat, are predominantly incurred in local currency experience problems arising from exchange rate fluctuations.

They have also paid back a significant share of external debt and converted much of what remains into more manageable local currency liabilities.

Many countries therefore view the development of local currency bond markets to be an important policy priority that reduces vulnerability to external shocks.

Some of the Asia Pacific and Latin American and Caribbean countries have begun to issue long term, local currency bonds to promote investments.

But China s total public debt, including off balance sheet local government financing vehicles, probably amounts to around 70 of GDP already.

The euro is also a global reserve currency (albeit of secondary importance), but most eurozone governments financing costs are much higher than what the US Treasury pays.

Many believe that the reduction of local control over the schools as a result of the elimination of local financing has been a major contributor to the poor performance of some American schools.

Countries that have their own currency, like the United Kingdom and especially the United States, which can borrow from foreigners in dollars do not face a direct financing constraint.

In earlier decades, countries held dollars because they needed to have a highly liquid and widely accepted currency to bridge the financing gap if their imports exceeded their exports.

Vertical supply chain linkages can also provide an effective channel for local companies to gain access to markets, financing, skills and know how.

In 2009, sharp drops in commodity prices and the effects of the global financial crisis caused the local currency to drop 40 against the U.S. dollar.

Governments may be able to mobilize funding through debt swaps, where donors exchange debt for local currency investment in environmental protection, such as waste water treatment.

Enhancing the role of its Special Drawing Rights (SDRs), or supplementing the dollar with another world reserve currency, would help facilitate the financing needs of both deficit and surplus countries.

Several other factors must be considered, including China s financial structure, financing model, savings rate, and stage of economic development, as well as the relationship between currency and finance in China.

For example, in India, there is a great need for financing large infrastructure projects a need that cannot easily be met by local banks.

Local governments have started a discussion about creating and financing additional care institutions and forms of activities for children under the age of 3.

They also acknowledged that many such technologies exists at local levels and that financing remains one of the main issues for enhancing their deployment.

Policymakers in many emerging market countries worry that surging capital inflows will drive up the value of the local currency, destabilize financial markets, and fuel economic overheating.

Finally, local currency bond markets and, more generally, domestic capital markets in emerging economies must be explored further, in order to lengthen the tenure of financial flows.

Expanding the Global Fund s mandate to include financing for training and deployment of community health workers, construction and operation of local health facilities, and other components of primary health systems could ensure the development of these local systems.