Local Currencies

A local currency is a currency recognised for use in a specific area to complement a national currency. They are used within a local community as an incentive to promote the local economy, locally owned businesses and short supply-chains. Their usage is mainly based on agreement between the parties exchanging the currency. They are usually designed for purchasing goods or services and not for savings. In this regard, many of those currencies are designed to lose value with time. Therefore, their circulation rate is usually higher than national currencies.