Questions tagged [currency]

a generally accepted form of money, including coins and paper notes , which is issued by a government and circulated within an economy.

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2answers
1k views

Can small countries use a foreign currency as their official currency?

Having one of the "big currencies" (US-Dollar, Euro, Japanese Yen) is of several advantages: Tourism: There is a huge amount of people who can directly use it (317*10^6 US citizens, 337*10^6 people ...
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1answer
146 views

Currency substitution after withdrawal from a currency union?

Currency substitution is the situation where a country uses a foreign currency. For example, Montenegro and Kosovo unilaterally use the euro, El Salvador and Panama unilaterally use the dollar. In ...
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2answers
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Why does a currency devaluation make a country more attractive for foreign direct investment?

The author of this article says "[the devaluation of the yuan] may also have impact on [foreign direct investment (FDI)] if China becomes a more attractive destination vis-a-vis India". Why is this? ...
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1answer
253 views

What would happen in Venezuela if the currency exchange control is removed overnight?

What would happen in Venezuela if the government all of a sudden starts offering currency exchange by the prices of the free market? To my knowledge, the main reason for the government in Venezuela ...
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What is the impact of a technology to produce gold at low cost?

Let's say in a few decades we can find a new technology to produce gold at low cost which will cause the price of gold to be as low as other metals. My question is that how would this have an impact ...
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What is the chain of events that occur when oil price drops that makes the Canadian dollar lose value? [duplicate]

A large part of why the CAD has been weakening (against the USD) is because the value is crude oil has been falling, and Canada is a big exporter of oil. But this oil doesn't belong to Canada. It ...
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1answer
858 views

Series 2013 US dollar bills [closed]

it's 2015 now but still, I can't find any USD bills of 2013 series. All my bills are 2009 series (not even 2009A series). I'm looking for 100 dollar denomination. what's the latest series for USD ...
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1answer
102 views

What does “the world's strongest currency” title mean for investors? [closed]

Kuwaiti Dinar shows up as the most expensive in the world. Does that mean I better invest in KWD (or the safe USD) instead of my home currency (IDR)? A little background: I am just an ordinary person ...
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3answers
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Why is Indian rupee is stable against the USD even though most other currencies weakening?

The Indian Rupee (INR) seems fairly stable against the USD (1 USD = 62-64 INR) in the recent times even though most other currencies have weakened against USD, some by 20-30%. Apparently, INR is ...
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1answer
432 views

Why are CAD, AUD known as commodity currencies

Why are some currencies like CAD, AUD known as commodity currencies?
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2answers
56 views

Foreign Currencies Exchange Data [closed]

I need data for forex rates because I'm working on a project to predict the rise and fall of the rates. Where can I find such data?
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4answers
880 views

I lost $100 in the laundry, who won?

I lost a 100 dollars bill in the laundry (it was destroyed). I clearly lost 100 dollars. Where are they now? Who won 100 dollars?
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0answers
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Why 1000 Rs and 500 Rs not accepted in Bhutan and Nepal? [closed]

In Nepal and Bhutan, Indian rupee is accepted but 500 Rs. And 1000 Rs note is not accepted. Cam there be any specific reason behind this?
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Baht drops and Gas Prices too? [closed]

Why would the powers to be drop the price of petro while their currency's value declines? The Thai Baht has been dropping significantly in value the past few weeks at the same time the price per ...
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1answer
819 views

Why would a government allow currency speculation?

I would like to know the reasons for any government to allow currency speculation. What is the benefit for a country and for it's people if the currency speculation is allowed? My cousin's farm is ...
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2answers
1k views

Floating exchange rate and cost-push inflation?

I have a trouble understanding the following text from my textbook. I bolded the fragments that don't make sense to me. "Disadvantages of a floating exchange rate: A floating exchange rate regime may ...
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Currency conversion and Purchase Power Data

Where can I find multipliers to convert a certain amount in a currency, say USD of 1960 to say present EUR taking account of purchase power parity ?
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5answers
429 views

Why should Greece destroy their cash euros?

Leading economists in my country (Sweden) recommend and predict that (in the case of default) the Greek government will destroy all the euro bills in the country. Making holes in them and stamp them ...
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1answer
522 views

How does US (its economy, banks, industry) profit from dollar being the “standard currency”?

How does US (its economy, banks, industry, "finance industry") profit from dollar being the "standard currency"? I am not seeking "ideological" explanations, but explanations of the mechanisms ...
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1answer
133 views

Questions regarding foreign exchange online trading

I am currently studying economics in college and taking course Macroeconomics and International Finance which covers foreign exchange market topic. The class is very crowded since there are more than ...
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0answers
178 views

How does a country increases or decreases it currency value (exchange rate) against other nations currency?

I want to know how a country, Mexico for instance, keeps the exchange rate higher or lower against other nations currency, USD, EUR, JPY. How does the value of a nation currency is valued against ...
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1answer
62 views

What will happen to the reserves at the Fed?

Banks currently have 2.7 trillion Federal Reserves that they hold at their Federal Reserve account. It's part of the monetary base and these reserves were created when the Fed purchased bonds in their ...
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2answers
109 views

Effect of Strengthening US Dollar on Commodities

Many commodities are prices in US dollars. If the Dollar strengthens, then commodities (in non-US countries) will become more expensive. From the consumers' (suppliers') point of view, this should be ...
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1answer
464 views

Would a world-wide currency be a good idea? [duplicate]

While every country has it's own political ideals, enforcing laws and rules, in an ever more globalized world, I believe the idea of fragmented economy is limiting big growth opportunities while ...
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2answers
768 views

What is the relationship between S&P500 and the US dollar

In the recent past, both the S&P 500 and the USD (against other currencies) have appreciated a lot. From what I understand, if USD goes up against other companies, the major companies of the S&...
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1answer
72 views

what alternatives can possibly back a new currency

A currency can be backed by a trusted issuing authority, by a scarce resource or by the scarcity of its money base (eg bitcoin). Are there any other known working alternatives.
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1answer
62 views

How to determine the worth of a good

I've searched around the web for awhile now and I'm beginning to think this might be an unanswerable question. I want to know if there is a theoretical way to determine the worth of a particular good, ...
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2answers
968 views

What effect would converting the lowest denomination note to a coin be?

In New Zealand our lowest denomination note is a $5 note. For perspective, a can of coke costs $1.50 - $2.00, a Big Mac costs around $5. The idea of a $5 coin is on the cards. The question is - ...
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2answers
144 views

How Much Gold Did Weimar Have Pre-Hyperinflation?

A few years ago, Peter Schiff and a few other Austrians (not all Austrians, as Mish was stating the opposite) were adamant about hyperinflation and Paul Krugman stated that it was like talking about ...
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0answers
39 views

Real time data map about the amount of a currency that are held in the world ?

Where can I see in real time data about the amount of a currency that is held in central banks (and maybe other significant places) ? A map would be great. I would like to know if there is an ...
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2answers
456 views

Why was Swiss National Bank in red by keeping fix exchange rate to Euro?

When I read news about the action of Swiss National bank of not keeping fix ration to Euro any more, I read in all articles, that it was too expensive for Swiss National Bank to keep the fixed ...
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2answers
200 views

Unlimited supply of national currency?

I was reading this article about Denmark central bank defending its currency peg: http://www.bloomberg.com/news/2015-01-22/denmark-cuts-key-deposit-rate-to-minus-0-35-to-drive-down-krone.html In it ...
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2answers
6k views

What is the advantage and disadvantage to have a high value of USD for USA?

What is the advantage and disadvantage to have a high value of USD for USA? China and Japan always want to keep their currency low as oppose to USA.
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1answer
3k views

Benefits of a weak national currency

I often hear that developing economies can benefit from a weak national currency. For example China as exporter deliberately makes its national currency weaker, so that it gains an advantage. Are ...
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1answer
55 views

What's the point of adding security features to new bill designs?

What's the point of creating new bills with more security measures to prevent counterfeiting? (For example in the USA the new $100 bills have more security features). If the old bills are still ...
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5answers
482 views

Why isn't there an “ideal value” for a given currency? [closed]

If a currency can be worth too little (e.g. needing \$10,000,000,000 to buy a loaf of bread) and worth too much (e.g. being able to buy a loaf of bread for $0.00001), why isn't there an "ideal value" (...

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