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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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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 ...
WS2's user avatar
  • 10.7k
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 ...
David Hobs's user avatar
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 ...
arne.b's user avatar
  • 983
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 ...
Pollman's user avatar
  • 1,934
40 votes
5 answers
10k 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?
user avatar
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 ...
juhist's user avatar
  • 803
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 ...
Oliver Mattos's user avatar
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 ...
JonathanReez's user avatar
  • 50.9k
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 (...
musialmi's user avatar
  • 417
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 ...
Kijit's user avatar
  • 381
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 &...
JonathanReez's user avatar
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23 votes
6 answers
32k 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 ...
Justin Beagley's user avatar
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?
user avatar
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 ...
Nick C's user avatar
  • 952
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 ...
Ertai87's user avatar
  • 2,436
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?
John Dallman's user avatar
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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 ...
Rameez Ul Haq's user avatar
17 votes
3 answers
3k views

Why was having a common currency in the EU seen as necessary?

When it was introduced, the € (Euro) was supposed to be the common currency for the entire EU, even if it turned out many countries (such as the UK) would stay in the EU without using the € currency, ...
Bregalad's user avatar
  • 7,381
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 ...
SCFi's user avatar
  • 1,042
15 votes
2 answers
817 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 ...
Martin's user avatar
  • 671
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 ...
Sayaman's user avatar
  • 43.8k
14 votes
4 answers
3k views

Are local currencies unconstitutional?

In many places around the United States, localities and organizations have been printing money as a means to drive business toward local establishments and raise money for the community in times of ...
Michael Kingsmill's user avatar
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 ...
user avatar
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 ...
Evargalo's user avatar
  • 7,008
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 ...
Babu's user avatar
  • 3,287
12 votes
4 answers
1k views

Barriers to a global currency

I am trying to figure out some clear points as to why there is no global currency. Not a world wide version of the EU, I am only focused on a common name/value for a single monetary unit. I know a ...
Gareth Shepherd's user avatar
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 ...
user avatar
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 ...
Sayaman's user avatar
  • 43.8k
11 votes
2 answers
761 views

How can the Indian government ban old notes without passing any bill/law?

Before making any major decisions/policy/law for the public the Indian government should pass a bill. It's usually done through the voting by the Member of Parliaments in the Parliament. After getting ...
Memo Burns's user avatar
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 ...
y0m0mm4's user avatar
  • 288
11 votes
1 answer
528 views

Has any government made the unwinding of their US bonds and currency reserves a core public policy plank or a legal requirement?

The betting odds (at time of writing) on a partial US debt default this year were 6/4 - Default and 1/2 - No Default. Considering the odds, this is something of a wake-up call for nations and ...
LateralFractal's user avatar
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.)
Julius Hamilton's user avatar
10 votes
3 answers
3k 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 ...
JonathanReez's user avatar
  • 50.9k
9 votes
2 answers
298 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 ...
Raj's user avatar
  • 291
9 votes
2 answers
342 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 ...
user75619's user avatar
  • 657
8 votes
2 answers
2k views

Why do unstable countries prefer a black market for currency to exist, rather than accepting the real exchange rate?

Countries such as Venezuela or Uzbekistan refuse to acknowledge that their currency is undergoing high levels of inflation, which results in fake exchange rates and the existence of a black currency ...
JonathanReez's user avatar
  • 50.9k
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 ...
Nap's user avatar
  • 401
8 votes
1 answer
1k views

Why and how did Zambia stop accepting USD as internal currency?

There are plenty of articles stating that while in Zambia it was common to accept USD as currency, this is no longer true, and instead now everyone has to use the local currency ZMW. None of the ...
o0'.'s user avatar
  • 1,133
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'...
gnasher729's user avatar
  • 4,888
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 ...
Alex Pappas's user avatar
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 ...
Tyler Mc's user avatar
  • 6,354
7 votes
1 answer
362 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 ...
got trolled too much this week's user avatar
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 ...
Alexei's user avatar
  • 53.4k
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 ...
Shree's user avatar
  • 171
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 ...
Sayaman's user avatar
  • 43.8k
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 ...
user avatar
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 ...
Sayaman's user avatar
  • 43.8k
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 ...
user366312's user avatar
5 votes
3 answers
699 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 ...
Sentinel's user avatar
  • 436
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 ...
Babu's user avatar
  • 3,287