WI an independent Quebec adopted the Euro?

So how do/did the Ecudoran/ 1990s Argentinian adoption of the US Dollar work then? Is there a formal arrangement of kinds between their central banks and the Federal Reserve?
 

Susano

Banned
I think that was just those states saying "Okay, the dollar is now legal tender". That doesnt make those states "participate" in the USA dollar, so to say, and it doesnt even encessariyl require arrangment between the respective central banks. Its something else.
 
Bosnien/Hercegovina uses Euro as a legal tender without being a part of Eurozone. I am not sure whether it is a result of official agreements with the ECB or just their decision.
I don´t think that an independent Quebec would under no circumstances become a part of the Eurozone. But I assume that first they would want/have to become an EU member, and this would have to have been approved by USA - since the rest of North America is clearly their (inofficial) zone of influence. It would be interesting what horse trade would be required to gain their agreement. OTOH in such a situation Quebec may be seen as a possible US puppet / influence channel / lobbying gateway in the EU (a là Poland under the twins but easier to control).
 
Bosnien/Hercegovina uses Euro as a legal tender without being a part of Eurozone. I am not sure whether it is a result of official agreements with the ECB or just their decision.
I don´t think that an independent Quebec would under no circumstances become a part of the Eurozone. But I assume that first they would want/have to become an EU member, and this would have to have been approved by USA - since the rest of North America is clearly their (inofficial) zone of influence. It would be interesting what horse trade would be required to gain their agreement. OTOH in such a situation Quebec may be seen as a possible US puppet / influence channel / lobbying gateway in the EU (a là Poland under the twins but easier to control).

Bosnia doesn't use the euro. It uses it's own currency, the convertible mark, which is pegged to the euro.

The only countries/territories that use the euro without official agreement with the ECB are Montenegro and Kosovo. This is along the same lines as Ecuador using the US dollar. It means that these countries/territories have absolutely no control over monetary policy whatsoever - if the Federal Reserve or ECB do something that affect the US dollar or euro which would not be in the interest of Ecuador or Montenegro, the most those countries can do is keep quiet and accept it or stop using the US dollar/euro respectively.

Of course Ecuador, Montenegro and Kosovo are really small economies (and Kosovo's economy is mainly informal and was partly criminal for a while). Much smaller than Quebec's would be so they are very poor examples of what Quebec would do. For them using the dollar or euro may not have that detrimental an impact due to the size of the economy and the fact that their economies are tied to the economies of the currencies they use. It is highly unlikely for an independent Quebec to use the euro as it's currency because it's trade with the US is more important than trade with Europe, hence what happens in the US economy is likely to have more immediate and long term effect on any independent Quebecois economy than the Eurozone economy would. It would probably require the US to undergo sharp economic contraction and a (painful) shift in Quebec's trading relations such that Europe becomes the major trading partner before Quebec would even consider using the euro. In order of plausibility the currency used by an independent Quebec would be:

1. It's own currency (probably a "franc")
2. the Canadian dollar
3. the US dollar
4.the euro (and this would be more like plausibility scenario number 104 rather than just 4).
 

Susano

Banned
Bosnia doesn't use the euro. It uses it's own currency, the convertible mark, which is pegged to the euro.
It used to have the D-Mark (to which it was pegged before teh Euro introduction) as legal tender, though. Same with Montenegro and Kosovo (both even before independance). We used to have a neat little currency colony on the Balkans before we introduced the Euro :D
 
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