As I understand from their site, while you can trade euros for the local currency at a rate of 1:1, you cannot trade your local currency for euros.
They have a FAQ [0] (in French, sorry) that states that the national financial autorities do not allow for you to exchange your local currency for euros. What’s more, if you pay for something in the local currency you cannot receive change in euros - the vendor needs to give you change in the local currency, too.
It sort of seems like once you ‘buy’ your local currency, you can spend it but you can never trade it for euros again. The peg of the currency to the euro 1:1 seems to be convenient more than a tax dodge, but I have never used it personally.
As I understand from their site, while you can trade euros for the local currency at a rate of 1:1, you cannot trade your local currency for euros.
They have a FAQ [0] (in French, sorry) that states that the national financial autorities do not allow for you to exchange your local currency for euros. What’s more, if you pay for something in the local currency you cannot receive change in euros - the vendor needs to give you change in the local currency, too.
It sort of seems like once you ‘buy’ your local currency, you can spend it but you can never trade it for euros again. The peg of the currency to the euro 1:1 seems to be convenient more than a tax dodge, but I have never used it personally.
[0]: http://www.lagonette.org/utiliser/