Questions tagged [currency]

Questions about a system of money in general use in a particular country or its relationship to international trade, such as, exchange rates or reserve currencies.

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53 votes
14 answers
11k views

How is printing money different from taxing people?

From what I understand, printing money gives the government more money while, in time, decreasing the value of the rest of the money in circulation (or reducing how much the value of the currency ...
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28 votes
7 answers
6k views

Is the Ruble exchange rate a reliable indicator of economic stability in Russia?

Back in February 2022, it seemed like the Ruble would rapidly collapse. However, nowadays, the USD/RUB exchange rate looks better than at any time in the past year: You could argue that this is a &...
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8 votes
2 answers
247 views

Why does Russia insist on oil payments in rubles and Europe refuses? [duplicate]

Many European countries import oil and/or gas from Russia. Russia demands payment in rubles, the European countries mostly insist on payment in Euros. I'm sure both sides have good reasons, but I don'...
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  • 4,461
-1 votes
1 answer
117 views

What checklist a country would have before making bilateral currency exchange with Russia?

Bilateral currency exchange like in between India or China with Russia at this moment is risky because the currencies would be pegged to Euro when the Rouble is losing value more than the former two's ...
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  • 2,287
53 votes
4 answers
8k views

What does Putin/Russia gain from only accepting payment for gas in Rubles?

Yesterday, Vladimir Putin announced that "unfriendly" countries would need to pay for Russian gas in Rubles in the near future. The news came with speculation that this is a move to prop up ...
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39 votes
2 answers
8k views

Why did Russia have their foreign currency reserves in overseas banks?

According to this BBC article, Russia anticipated that their invasion of Ukraine would lead to sanctions and one of their ways to sanction proof their economy was to build a large foreign currency ...
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  • 1,642
0 votes
0 answers
52 views

Reference for public's awareness about Central Bank Digital Currency (CBDC)?

I am looking for some papers (or journals) about the public's awareness about CBDC in global context or within-country context. The main questions I am concerning is which topics or regulations that ...
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1 vote
2 answers
1k views

Why is the Afghan currency stronger than the Pakistani currency?

Afghanistan is a war-torn country. Afghanistan doesn't have any relations with the external world. However, it seems that the Afghan currency is stronger than the Pakistani currency: What should be ...
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13 votes
1 answer
291 views

How has demonetization affected India in hindsight?

On 8 November 2016, the Government of India announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes ...
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1 vote
0 answers
48 views

Which countries apply one-tiered system or two-tiered system in implementing CBDC?

Central Bank Digital Currrency (CBDC) has been proliferated since 2014. Since then, some countries have implemented the one-tiered system or two-tiered system in management. One-tiered system is that ...
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17 votes
4 answers
4k views

Why is Recep Tayyip Erdoğan allowing the Turkish Lira to plunge?

If you have been into Turkish Lira recently, you would be shocked you see that the Turkish Lira's value has been lost more than two times as compare to its value 2 years ago. Now, there have been ...
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6 votes
1 answer
195 views

Why is Switzerland holding such a large foreign exchange reserve?

According to Wikipedia's List of countries by foreign-exchange reserves: Why is Switzerland holding such a large foreign exchange reserve? Asian countries decided to maintain a large foreign exchange ...
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11 votes
1 answer
1k views

Why do some African countries use the CFA franc if it means that they need to pay France money to be able to print money for their economies?

Why do some African countries use the CFA franc if it means that they need to pay France money to be able to print money for their economies? Strictly speaking, the CFA franc is the name given to two ...
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  • 9,022
1 vote
2 answers
251 views

Why doesn't the U.S. ban or regulate cryptocurrency to stop it being used by other countries to evade U.S. sanctions?

Why doesn't the U.S. outlaw or strictly regulate cryptocurrency to prevent it from being used by other countries to evade U.S. sanctions? Is there a rationale behind this? Is there a concern about the ...
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  • 9,022
4 votes
2 answers
535 views

What interventions could decrease the price of Bitcoin? [closed]

The high value of some cryptocurrencies, in particular Bitcoin has had the effect of causing a significant increase in the demand for electricity leading to increases of carbon emissions. (See https:/...
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0 votes
1 answer
665 views

Why does the Executive make (promulgate) laws? The laws should be made by the legislative

The Executive, as its name suggests, should be working for the execution and in the Polity, I think, it would be executing the laws. The laws are made (or consented, if you like) by the legislative (...
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29 votes
7 answers
4k views

Why is using the euro instead of a local currency such a big deal and why is the wealth of the society an argument?

I think this is a question of both economics and politics, but I decided to ask it here. There will soon be elections in Poland. There was a debate about this question: should Poland keep the złoty (...
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28 votes
7 answers
5k views

Has any government throughout history banned foreign currencies?

Has any government throughout history banned foreign currencies? It happened in Zimbabwe in 2019 for example. How about other countries? I'm also interested in broader answers, like governments ...
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64 votes
3 answers
6k views

Why do US police treat using counterfeit money as an emergency?

One thing that surprises me about the George Floyd incident is that the police would treat the passing of a counterfeit $20 in a corner shop as some kind of an emergency. If someone called the ...
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  • 9,711
7 votes
3 answers
628 views

What are the benefits of a national cryptocurrency?

I have read about the Marshall Islands partnering with the company Algorand to produce their own cryptocurrency that will act as the nation's official currency. Is there any special benefit from ...
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2 votes
1 answer
124 views

What in EU rules prevents competitive currency devaluation (outside the Eurozone)?

Not every country in the EU is in the Eurozone. Given that the Single Market prevents EU countries from slapping each other with tariffs (Trump style), what prevents the countries in the EU but not in ...
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  • 105k
8 votes
2 answers
267 views

How did India replace of pre 1947 currency?

As India and Pakistan got independence from British, there were British Indian currency in circulation. Was that currency banned/replaced in a similar fashion as demonetisation of 2016, where old ...
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  • 271
3 votes
1 answer
150 views

Has the Thai government taken a position on the strength of the Thai Baht?

According to CNBC in late July 2019 The Thai baht has soared against the U.S. dollar this year, significantly more than many other emerging market currencies. [...] “Policymakers and exporters in ...
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1 vote
3 answers
666 views

What prevents other nations from participating in and condoning the counterfeiting of the United States dollar?

I don't understand why people in 3rd world countries don't try to counterfeit the US dollar. If you're in Zimbabwe or Syria the government presumably isn't going to stop you and it just needs to be ...
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8 votes
2 answers
318 views

What are the possible consequences of being labelled as a currency manipulator?

What are the possible direct consequences of being labelled as a currency manipulator? Yesterday, the U.S. labelled China as a currency manipulator. Tariffs no longer being able to be used against ...
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  • 431
6 votes
3 answers
9k views

What is the effect and/or good reasons of changing a paper bill to a coin?

Recently, there's this news circulating that the government of my country, the Philippines, is planning to change our 20 pesos paper bill into a coin. I'd like to believe that there are issues solved ...
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5 votes
1 answer
244 views

Who limits the euro issued in each eurozone country?

In my understanding each member of eurozone prints their own euro. How was it decided how much euro will be printed by each country per year? Also, for weak eurozone countries, what is preventing ...
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  • 361
34 votes
8 answers
10k views

How do governments keep track of their issued currency?

If a government issues currency and it ends up in bank accounts abroad, what stops banks from making a 'mistake' during a transfer, accidentally duplicating the currency? Is there some central ...
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18 votes
4 answers
2k views

Why is the SNP putting so much emphasis on currency plans?

The SNP (Scottish National Party) have made a big thing during their conference this weekend about their plans for their currency should they gain independence from the UK. However, their current key ...
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  • 932
14 votes
2 answers
723 views

Why is the EU not happy with the euro usage in Montenegro

According to Wikipedia, the ECB and the European Commission are unhappy about the usage of the Euro as the national currency of Montenegro. The European Commission and the ECB have since voiced ...
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  • 651
10 votes
2 answers
839 views

Why do Europeans pay for European products with US Dollar?

In Jean-Claude Juncker's most recent speech on the state of the European Union, there is this perplexing passage: It is absurd that Europe pays for 80% of its energy import bill – worth 300 ...
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  • 278
1 vote
1 answer
210 views

Laws concerning the appearance of US dollars

A recent question concerning the president putting himself on the dollar got me to thinking: The US dollar at one time was printed with an appearance to celebrate aspects of education. I'm wondering ...
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  • 1,502
16 votes
1 answer
4k views

Can the president put his own likeness on money?

Preface, I am unsure of all the powers the Federal Reserve possess or who controls the Reserve outside of congress. However it is at the Federal level so I was wondering. What control over the ...
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  • 1,044
9 votes
2 answers
333 views

How does America prevent deals in dollars between the third parties?

Say, India wants to buy weapons from Russia, Russia is under American sanctions, and America doesn't want this deal to happen so it says the transaction, as long as it's in dollars, won't be ...
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  • 657
11 votes
2 answers
669 views

Why are all Iran-German/Iran-European trades made in Dollar instead of Euro?

Germany and most of the EU members declared that they are against the US-sanctions targeting Iran. I wonder how and why all trades with Iran are involving US credit institutes and why trades in Euro ...
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6 votes
1 answer
415 views

How were farmers affected by demonetization in India?

In 2016, The India government declared ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series invalid. This announcement led to significant economic disruption. It is said that farmers were affected ...
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  • 171
7 votes
1 answer
345 views

What's the EU (or at least German) view on the definition of currency manipulation?

The US has a statutory definition of currency manipulation; while some US economists don't quite agree with the legal definition, nevertheless the topic is fairly widely discussed in the US in ...
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  • 105k
13 votes
2 answers
1k views

Is there any indication that the Euro rate is being politically manipulated?

In a recent (August 20, 2018) interview for Reuters about international politics, the president of the United States of America Donald J. Trump stated (emphasis mine): ON CHINA AND EUROPEAN UNION ...
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40 votes
5 answers
9k views

Why does PRC devalue its currency on purpose, but Turkey is worried about the devaluation of its currency?

PRC regularly devalues its currency to promote export. On the other hand, Turkey is worried about the plummet of its currency. Why two outcomes in the same type of case?
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-3 votes
2 answers
210 views

Why would a country fight money laundering by nationals of non-allied countries?

Many Western countries have laws that forbid money laundering which apply to citizens of all countries rather than just their own nationals. Countries like UK have been recently cracking down on ...
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1 vote
2 answers
811 views

Why do countries antagonistic to the USA keep US$ as their reserve currency?

Do Russia, China, Venezuela, Cuba, Iran, Pakistan, etc. use US$ as their reserve currency? If yes, I am curious why. Why don't they use Euro or Chinese Yuan?
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5 votes
3 answers
681 views

What effect will Euro purchases of Iranian crude by Europe have on US foreign policy?

According to articles like this there seems to be a move towards Europe saving billion dollar deals with Iran by switching to Euro for crude purchases. Apparently to avoid dollar sanctions on Iran ...
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  • 404
4 votes
3 answers
753 views

Is Russia devaluing their currency?

Today Donald Trump said: Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable! Is there any evidence that Russia is devaluing their ...
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3 votes
2 answers
295 views

Is the UK EU membership bill paid in GBP or EUR?

Is the UK EU membership bill paid in GBP or EUR? If it is paid in euros, is this not inefficient because eventual credits (eg development funds) will need to be converted back into sterling, so a ...
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  • 10.4k
5 votes
2 answers
522 views

Is it possible for a country to use a cryptocurrency as an official currency?

According to this article, Venezuela announcing the creation of El Petro, a state-sanctioned cryptocurrency: Venezuela has followed suit, announcing the creation of El Petro, a state-sanctioned ...
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  • 49.4k
18 votes
3 answers
11k views

Why do tourists have to declare $10,000 or more entering some countries?

I understand why you'd need to declare other things, but I'm not sure why money should be investigated. Why do countries have such laws in place?
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24 votes
6 answers
29k views

Does currency exist in communism?

I've thought about this before, but never heard any explanation as to how this works. My understanding of communism is: Everyone works. Everything is rationed out equally. Since there is no ...
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3 votes
0 answers
134 views

Why is it so important for a non-EUR EU member to adopt EUR currency? [duplicate]

I live in a non-EUR EU member (Romania) and I keep hearing for several years about the aim for EUR adoption. Technically, there are several criteria (EUR convergence criteria) that must be met in ...
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  • 49.4k
9 votes
3 answers
2k views

Why don't all countries with large denominations of currency go through redenomination?

The South Korean Won and the Japanese Yen are one example of currencies with extremely large denominations. A single unit of both currencies has been worth less than 1 US cent for a couple of decades ...
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  • 44.2k
13 votes
4 answers
6k views

Why is "In God We Trust" written on US currency? [duplicate]

It is written on US currency "In God we trust": I know that US constitution is secular. This link says that the founding fathers didn't even like the idea of religion in the system. Why is this ...
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