Currency boards like those in Argentina and Hong Kong aim to reduce currency risk, but the currency risk premium is often positive and can be large. The premium can vary across markets and its term structure changes during turbulent times. The forward discount usually exceeds the currency premium, especially during crises. These differences may be due to arbitrage opportunities, market segmentation, or other risks. The premium and its term structure are influenced by domestic and global factors, including devaluation expectations and risk perceptions.