The foreign currency exchange guarantees that everyone ends up with the currency they want as well as sets the standard of comparisons like the value of cars in yen to the value of food in dollars.
Hale, in a 29-page ruling issued late yesterday, said it would undermine U.S. policy to allow Vitro, which is in reorganization proceedings in Mexico, to deprive foreign creditors of guarantees from solvent subsidiaries that back its bonds.
Faris Boueiz, the foreign minister, has rejected the idea of extra security guarantees, insisting that the resolution leaves no room for creative interpretation.
Italian Foreign Minister Giulio Terzi said the Iranian ambassador to Rome was being summoned to give guarantees of security for Italy's mission in Tehran.
Under a currency board arrangement, the central bank guarantees the redemption of all notes in circulation at a set exchange rate to the dollar or another foreign currency or basket of currencies.