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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6
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1answer
144 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 ...
12
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1answer
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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2answers
231 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
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2answers
526 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:/...
0
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1answer
651 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 (...
28
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7answers
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 (...
28
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7answers
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 ...
64
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3answers
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 ...
7
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3answers
518 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 ...
2
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1answer
122 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 ...
8
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2answers
215 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 ...
3
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1answer
95 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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3answers
632 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 ...
8
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2answers
306 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 ...
6
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3answers
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 ...
5
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1answer
234 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 ...
34
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8answers
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 ...
18
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4answers
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 ...
14
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2answers
675 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 ...
10
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2answers
798 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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1answer
199 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 ...
16
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1answer
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 ...
9
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2answers
324 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 ...
10
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2answers
457 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 ...
6
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1answer
408 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 ...
7
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1answer
337 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 ...
11
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2answers
902 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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5answers
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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2answers
167 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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2answers
698 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?
4
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3answers
472 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 ...
4
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3answers
545 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 ...
3
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2answers
294 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 ...
5
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2answers
513 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 ...
18
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3answers
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?
24
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6answers
26k 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 ...
3
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0answers
133 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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3answers
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 ...
13
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4answers
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 ...
32
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6answers
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 ...
2
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2answers
219 views

Why does the U.S. mint bother coming up with coins no one uses for business? [closed]

For years/decades there have been all kinds of different random coins that supposedly have been in circulation, but no one uses them. Some examples are the Saint-Gaudens double eagle and the Reverse ...
3
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0answers
371 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 / ...
12
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5answers
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 ...
4
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2answers
123 views

What does a change of "currency of choice in financial and foreign exchange reports" mean?

I just read that Iranian government announced it would stop using the U.S. dollar “as its currency of choice in its financial and foreign exchange reports,” According to that article this is ...
11
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2answers
630 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 ...
2
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2answers
7k 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?
6
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2answers
408 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
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1answer
227 views

What process did Indian Government use to remove high value currency notes out of circulation?

So the day before US election, Narendra Modi dropped a bomb that 500 and 1000 INR notes will be dropped from circulation. I want to know the democratic/legal processes that let him do this.
8
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2answers
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 ...
4
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1answer
491 views

Is it possible to create a single global government, economy and currency [closed]

I understand that this might be hard to answer but in a scenario where every action results in a positive outcome and everything needed gets the thumbs up and goes well (spoiler: this never happens) ...