83 votes
Accepted

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

Trade surplus/deficit Devaluing one's currency means mostly one thing: It becomes more expensive to import products from abroad, while one's own products become comparably cheaper to buy on the world ...
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  • 67.4k
60 votes
Accepted

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

It benefits Russia by forcing gas customers to purchase rubles at unfavourable rates, rather than Russian gas suppliers. At the moment, since President Putin enacted a decree obligating exporters to ...
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  • 81.4k
52 votes

How is printing money different from taxing people?

I can see one difference between taxing the people and printing currency. Taxing the people only takes money away from the people in that country, as the people outside the country don't have to pay ...
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48 votes

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

You cannot really "store" lots of money in the physical sense. Money is an entitlement to benefits in the future and mostly is just numbers in some computers and typically there is always a ...
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  • 5,807
45 votes
Accepted

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

It's mainly because there will always be people who do not have credit cards and still uses cash, for example, 96% in Sweden in the article that you cited. 4% is still a relatively huge number. This ...
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  • 45.7k
42 votes

How is printing money different from taxing people?

Taxation Taxes are usually paid on some sort of economic activity (earning income, purchasing goods or services, etc). In other words, they have value because the underlying activity has value. In ...
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  • 38.4k
39 votes
Accepted

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

The case of George Floyd is that he was accused of passing a counterfeit $20 Floyd allegedly used a counterfeit bill to buy cigarettes at the convenience store last week. The clerk reported it to ...
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  • 38.4k
36 votes

How do governments keep track of their issued currency?

Bank notes have serial numbers. The mint keeps track of what's been issued, and also the quantity of notes that have been taken out of circulation and destroyed. Back accounts are another matter. In ...
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  • 21.2k
35 votes

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

There's many downsides and reasons. Some areas have no reliable electricity. You need electricity to run CC transactions. Some areas have no reliable telecom infrastructure. You need a telecom ...
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  • 89.2k
35 votes

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

Investopedia has an article about why some countries prefer not to use the Euro. Countries with their own national currencies may have several advantages in managing economic problems: "They ...
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  • 13.7k
28 votes

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

This requirement is usually in place to combat money laundering and tax evasion. The Financial Action Task Force on Money Laundering, an international organization, has a series of recommendations for ...
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  • 2,336
27 votes

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

The fact that officers showed up promptly in person doesn't necessarily mean that they considered it an emergency. It means that they had the people available to respond and prioritized doing so over ...
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26 votes
Accepted

Has any government throughout history banned foreign currencies?

This has happened a few times before, and is usually a rather extreme measure used to promote the use of, and trust in, local currency, as opposed to transactions being conducted using a more stable ...
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  • 81.4k
26 votes

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

Exchange rate is not an indicator (or a very poor one) of economic well-being: it can be controlled by a central bank, via increasing money supply ("printing money", although nowadays it is ...
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  • 6,505
25 votes
Accepted

Can the president put his own likeness on money?

As per U.S. Code › Title 31 › Subtitle IV › Chapter 51 › Subchapter II › § 5114 ("31 U.S. Code § 5114 - Engraving and printing currency and security documents") (b) ... Only the portrait of a ...
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  • 89.2k
24 votes

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

It flips the sanctions risk target Currently, the money paid by western customers is in the matching western bank accounts of the (yet) unsanctioned Russian banks. That money can be unilaterally ...
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  • 1,680
24 votes

How is printing money different from taxing people?

Even allowing for similarities, the two differ in at least one important aspect: The government controls its taxes, assuming it is efficient in collections. Therefore it can lower taxes rather ...
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23 votes
Accepted

Does currency exist in communism?

Officially no; in some systems possibly yes; and in practice yes. By currency in the term of legal tender, a fully-communist system should not have currency for the reasons that you point out. That ...
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20 votes

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

I wonder that people did not mention the most dangerous reason. If there is no cash and every transaction need an account, you can harass, threaten or even bankrupt political opponents. If every good ...
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  • 4,652
20 votes
Accepted

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

Lowering interest rates makes it easier to borrow money. This allows businesses to grow using borrowed money, without having to pay high interest rates. The question assumes that allowing your ...
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  • 602
19 votes
Accepted

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?

Depositing is not exactly “paying”. In fact, the Banque de France paid interest on that money and is currently transferring it back to African central banks (as part of a broader transition out of the ...
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  • 29.6k
19 votes

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

In fact, foreign currency reserves almost have to be held elsewhere, usually as government securities or deposits at foreign central banks or at the Bank for International Settlements. You could ...
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  • 29.6k
18 votes

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

The SNP's long term goal is independence for Scotland. During the last referendum on the subject, the issue of which currency Scotland would use was an important point of contention. The legal ...
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  • 17.1k
17 votes

Has any government throughout history banned foreign currencies?

Currency controls or foreign exchange controls have happened time and again in history, taking different forms. At the extreme end, all foreign currency must be surrendered to the government at the ...
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  • 82.3k
17 votes

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

Possible effects of adopting the Euro: Pro: Poland has significant trade links with Eurozone countries. Adopting the Euro removes an obstacle to trade, since traders no longer have to hedge against ...
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  • 82.3k
16 votes

Has any government throughout history banned foreign currencies?

Soviet Union In USSR, any dealings with foreign currency without a special permit (in essence, allowing exporters to get paid in currency and immediately trade them for roubles at the central bank and ...
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  • 5,280
16 votes

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

This is more of a propaganda statement than a real intention. This is not new, it is only the first occurence when an official source (who could be more official source than V.V.Putin?) makes such ...
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  • 4,580
15 votes
Accepted

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

The main reason for a common currency was to remove the business risk which came from currency fluctuations. When a company in country A buys goods or services from a company in country B, they need ...
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  • 67.4k

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