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.

Filter by
Sorted by
Tagged with
64
votes
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 ...
40
votes
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?
34
votes
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 ...
32
votes
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 ...
28
votes
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 ...
28
votes
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 (...
24
votes
6answers
27k 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 ...
18
votes
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?
18
votes
3answers
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, ...
18
votes
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 ...
16
votes
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 ...
14
votes
4answers
2k 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 ...
14
votes
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 ...
13
votes
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 ...
12
votes
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 ...
12
votes
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 ...
11
votes
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 ...
11
votes
2answers
631 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 ...
11
votes
1answer
387 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 ...
10
votes
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 ...
10
votes
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 ...
10
votes
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 ...
9
votes
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 ...
8
votes
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 ...
8
votes
2answers
216 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 ...
8
votes
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 ...
7
votes
3answers
519 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 ...
7
votes
1answer
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 ...
7
votes
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 ...
6
votes
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 ...
6
votes
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 ...
6
votes
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 ...
6
votes
2answers
410 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)?
5
votes
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 ...
5
votes
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 ...
4
votes
2answers
527 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:/...
4
votes
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) ...
4
votes
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
votes
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 ...
4
votes
2answers
125 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 ...
3
votes
4answers
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 ...
3
votes
2answers
611 views

Why is the USA dollar the world reserve currency and what are the main consequences?

How would you tell your grandma why the USA dollar is the world reserve currency and what main consequences it has for the US and the world? Concerning why the dollar is the global reserve currency, ...
3
votes
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.
3
votes
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 ...
3
votes
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 ...
3
votes
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 ...
3
votes
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 / ...
3
votes
3answers
1k views

Pros and Cons on common currencies like Euro [closed]

I thought on Euro and if it is good or not for people generally. I am pretty much puzzled, and I have only personal opinion on this topic which is: It can be good for smaller countries, against ...
2
votes
3answers
4k views

How can a currency be manipulated?

How can a country manipulate its currency? For example: Canada actively purchases US dollars in an effort to control the US/Canadian rate. What are the ways Canada can use purchased USD to benefit ...
2
votes
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 ...