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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