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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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7 votes
4 answers
10k 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 ...
10 votes
9 answers
4k views

Does it harm a country/society/economy to destroy a large amount of their money?

How might it harm a society to destroy some of its money? (For example, by burning a large quantity of cash.)
3 votes
3 answers
5k views

Why doesn't Washington want to enact a law to punish all currency manipulators, including China?

Some policymakers and pundits have argued that currency manipulation–the effort to keep exports cheap by intervening in the foreign exchange market–is the most important issue international economic ...
14 votes
2 answers
2k views

Why do some African countries use the CFA franc even 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 even 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 ...
1 vote
1 answer
151 views

Would China currency-swap deal with Argentina be made useless if Argentina would switch to the U.S. dollar?

The People’s Bank of China made available $6.5 billion to Argentina from a currency swap line the countries share, President Alberto Fernandez announced Wednesday after meeting with President Xi ...
11 votes
5 answers
6k views

How do central banks outside the U.S. issue USD?

How do central banks outside the U.S. issue USD? Sometimes, during a recession, you need to issue currency to get the economy going, but sometimes you have a central bank that uses the currency of ...
1 vote
0 answers
45 views

Destruction of mutilated US currency. Does the BEP or US government agencies track the serial numbers of destroyed currencies?

Does BEP or any other government agency track the serial numbers of mutilated currencies that are destroyed?
1 vote
2 answers
357 views

Why is the composition of China's foreign exchange reserves classified information?

The exact composition of China's foreign exchange reserves is classified information.[7][8] In July 2019, China's State Administration of Foreign Exchange announced that at the end of 2014, US dollar ...
1 vote
2 answers
673 views

Why won't China reduce its exposure to US dollars after all this talk of decoupling?

As Treasury yields soar, however, that thinking may be changing - the two-year is up 50 basis points this month and close to November's 15-year high of 4.88%, while the 10-year is up 40 basis points ...
3 votes
2 answers
329 views

What advantages does China benefit from hiding a large amount of currency reserve from the rest of the world?

https://www.bloomberg.com/news/articles/2023-06-30/china-has-3-trillion-of-hidden-currency-reserves-setser-says China is sitting on a $6 trillion pile of money, half of which is “hidden,” and that ...
5 votes
1 answer
236 views

What is the effect of removing certain denomination of a currency?

About yesterday the Indian government withdrew 2000 rupee notes in circulation ref. Typically, when stuff like this happens, the explanation is that the attempt is to combat black money. This answer ...
17 votes
2 answers
5k views

Will the UK replace its banknotes and coins now there is a new monarch?

All sterling coins in circulation and most sterling banknotes have a picture of the late Queen Elizabeth II. Will they be replaced by ones with pictures of King Charles III?
-1 votes
0 answers
136 views

Why not print more money rather than taxes? [duplicate]

To my understanding, printing money devalues the currency because there is now more money in circulation. Now, the purpose of taxes is to absorb money back into the government directly. However, this ...
5 votes
1 answer
258 views

What are the pros and cons that a new common currency for Latin America bring to the region?

https://www.weforum.org/agenda/2023/03/what-do-talks-about-a-south-american-common-currency-say-about-globalization/ Argentina and Brazil recently announced preliminary plans to form a common ...
17 votes
6 answers
9k views

ELI5: Why is Russia's requirement for oil to be paid in Roubles abnormal?

There seem to be various stories of Russia cutting off various neighbouring and other Euro states from its oil over failing to pay for the oil in Roubles (this is independent of the Ukranian war and ...
57 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 ...
3 votes
2 answers
383 views

Why is confidence in U.S. banking at 27%?

"Gallup first measured confidence in institutions in 1973 and has done so annually since 1993. This year's survey was conducted June 1-20.": "Now I am going to read you a list of ...
53 votes
4 answers
9k 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 ...
6 votes
4 answers
660 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 ...
36 votes
7 answers
9k views

Why is Russia limiting its gas supply to the EU instead of stopping it altogether?

Recently, Russia has markedly reduced gas sold to European nations in their gas pipelines. This seems very strange to me. In my opinion, the only two logical amounts of gas to sell would be "as ...
5 votes
1 answer
476 views

How are the European countries paying Russia in Rubles?

As far as I understood, for the purchase of Russian gas, European countries can't pay Russia in EUR because of their sanction on Russia. On the other hand, as per Putin's decree, Russia only accepts ...
27 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 &...
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 ...
8 votes
2 answers
267 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'...
-1 votes
1 answer
120 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 ...
42 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 ...
13 votes
1 answer
368 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 ...
1 vote
2 answers
5k 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 ...
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 ...
1 vote
0 answers
57 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 ...
18 votes
3 answers
14k 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?
30 votes
6 answers
10k views

What is currently stopping the most developed states from completely abandoning cash?

Countries such as Sweden have debit card adoption rates close to 100%. The governments of the developed world frequently talk about moving to a completely cashless society, but so far not a single ...
7 votes
3 answers
665 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 ...
3 votes
0 answers
379 views

If the US decided to inflate its way out of their debt, what would the value of the dollar drop to? [closed]

Hypothetically, what would the value of the US dollar drop to if the US government decided it wanted to inflate its way out of their national debt all at once? Would it simply be: M2 money supply / ...
30 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 (...
6 votes
1 answer
607 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 ...
1 vote
2 answers
277 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 ...
4 votes
2 answers
539 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:/...
2 votes
4 answers
2k views

Monetary policy: why does the dollar work for the US, but the Euro doesn't for the EU? [closed]

Why does the European Union have so many problems with its currency? The US also has a currency that covers lots of different states, some as strong as California or NY, others on the weak side, with ...
4 votes
2 answers
444 views

Modi's Demonetization move?

What is the real advantage of India's demonetization if it does not solve the problem of black money in India? What was the logic of introducing a note of higher denomination (₹2000)?
-3 votes
2 answers
229 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 ...
2 votes
2 answers
8k views

How do governments stop hyperinflation?

After reading this, I wonder "How can a government stop hyperinflation?" What can other governments do to help? And for completeness, How do governments keep currency stability?
11 votes
2 answers
914 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 ...
12 votes
2 answers
743 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 ...
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 ...
6 votes
1 answer
432 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 ...
6 votes
2 answers
335 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 ...
27 votes
7 answers
6k 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 ...
8 votes
1 answer
378 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 ...
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 ...