Author Topic: Managing Currency Transition  (Read 2960 times)

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Offline kumarrahul

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Managing Currency Transition
« on: September 12, 2013, 08:11:20 AM »
Hello,

While I am certain that the contents of this thread are covered in multiple others, I did not see this subject dealt with independently.

By currency transition, I refer to a change in currency (either due to a political change, decimalization, redenomination or new monetary union formation).  This thread is to project patterns highlighting similarity between the previous currency coinage and the new currency set as an aid to transition.  Ideal case would be to have atleast 3 coins with similar characteristics.  This thread is not about new series introductions within the same currency.

While I have a few examples of such transition illustrated here.. I am sure there are several others that the knowledgeable members can help contribute.

Cheers
Rahul

Offline kumarrahul

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Re: Managing Currency Transition
« Reply #1 on: September 12, 2013, 08:17:14 AM »
Transition from British India to Independent Indian Republic and Government of Pakistan. As currency (pre-decimal Rupee) remained same post independence,
coins of both India and Pakistan retained the shape, size and composition as the British Indian coins which co-circulated in both countries for a while.

Offline kumarrahul

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Re: Managing Currency Transition
« Reply #2 on: September 12, 2013, 08:20:01 AM »
India - Transition to decimal coinage.
India, a populous country of 350 million (in 1950), had been using an 'advanced' 64-bit currency system (Rupee equals 16
annas equals 64 paise) for over a millenia.
a) The word 'Naya Paisa' implying new. The word 'naya' was retained for 5 years and dropped from coins from 1962 onward.
b) Explaining the relation with the Decimal Rupee. Thus, 1 naya paise was 1/100th of Rupee, 5 naya paise was 1/20th of Rupee and so on..
c) The Rupee, 50 paise and 25 paise retained the size, shape and metal composition of the pre-decimal Rupee. Nevertheless, old habits die hard.. and until a few
years back when paise coins were still in circulation, one could not avoid referring to the 50 paise as 'atthani' (8 annas), or the 25 paise as 'chavanni' (4 annas)!

Offline kumarrahul

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Re: Managing Currency Transition
« Reply #3 on: September 12, 2013, 08:23:52 AM »
Great Britain - Introducing the decimal 'penny' -
Similar concerns as faced by India must have plagued the British to changeover from a currency system that was established a millenia ago where the penny was 240th of the pound (Pound = 20 shillings; Shilling = 12 pence).  In fact, Great Britain was quite late at this - decimalizing only in 1971, while most British countries/prior colonies had decimalised a decade earlier. Here's what they did after taking all the time:
a) Used the word 'new' on all the new pence coins.  'New' was dropped from coins after a ten year period in 1981
b) Used exactly the same size for the 5 pence, 10 pence coins as the pre-decimal 1 shilling and 2 shilling coins that had an exact equivalent in both systems.  Both 5 pence and 1 shilling were 1/20 of the Pound.  These shilling coins co-circulated with the new currency until 1990.
c) Introduction of new denominations, viz 1/2p, 1p and 2p.  The decimal two pence was double the weight of the decimal penny, which was itself double the weight of the decimal halfpenny. This was so that the three bronze coins could all be stored together in bank bags and then weighed to determine their value. That is the historical reason why the two pence coin appears so outlandishly large for its worth these days.

Rhodesia -
Rhodesia planned to decimalize in 1970 with the new decimal dollar, was 1/2 the pre-decimal pound.  Thus, 5 decimal pence (5p) = 1/20 decimal pound = 1/40 pre-decimal pound = 6 pre-decimal pence (6d).  Interestingly, they pre-empted the decimalization and doubly denominated their coins.  Thus, In 1964 itself, coins of Rhodesian pre-decimal pound were introduced for 6 pence, 1, 2 and 2½ shillings, marked as 6D, 1’-, 2’- and 2’6. These coins also bore a denomination in cents (5C, 10C, 20C and 25C, respectively). This allowed the old coins to continue as legal tender even after decimalization.

New Zealand and  Australia - Similar case as Rhodesia where $2 = £1.  For New Zealand, the new ten cent coin was also doubly denominated as one shilling.  In addition, the 5c, 10c and 20c were the same size as the sixpence, shilling and florin that they respectively replaced.

Offline kumarrahul

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Re: Managing Currency Transition
« Reply #4 on: September 12, 2013, 08:26:19 AM »
Israel - Presents the most interesting example of this trend where the same design exists across fourcurrencies for coins of equivalent value. 1 Israeli new shekel (introduced in 1985) = 1000 Shekel (introduced in 1980) = 10,000 Israeli lira (introduced in 1960). Thus, the designs on coins of 1 new agora (1/100 New Shekel), 10 Old Sheqalim, and 100 Lirot would be the same. Similar concept is adopted all coins with new designs introduced for new absolute values introduced with
respect to the original lira.

Offline dheer

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Re: Managing Currency Transition
« Reply #5 on: September 12, 2013, 08:30:01 AM »
I had done something similar for Republic Indian Coinage only at this post

http://www.worldofcoins.eu/forum/index.php/topic,19750.msg133336.html#msg133336
http://coinsofrepublicindia.blogspot.in
A guide on Republic India Coins & Currencies

Offline Figleaf

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Re: Managing Currency Transition
« Reply #6 on: September 12, 2013, 08:50:47 AM »
Practically all countries have done some kind of currency reform at some time. Most of the time*, it was either decimalisation or re-denomination (lopping off zeroes.) The rules are simple.
  • In cases of decimalisation, make coins with the same value as similar as possible (size, weight, metal colour) and those with a different value as different as possible.
  • Make all coins as different as possible for re-denomination.
  • Educate, educate and educate.
"Different" does not necessarily include design, as people apparently do not look at it.

I am aware of a case of decimalisation where different value coins looked the same (Pakistan), but normally, these rules are well observed.

Peter

* Sometimes, a whole new currency was introduced, by force or voluntary.
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline kumarrahul

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Re: Managing Currency Transition
« Reply #7 on: September 13, 2013, 09:23:42 AM »
  • Make all coins as different as possible for re-denomination.

Hi,

Thanks for the feedback.  I agree that in case of re-denomination or even in some other cases, it may be more prudent to radically change the design, coin features than retain any elements from the previous.  Maybe especially true, if there is a radical change in government.  I had not thought on these lines previously.

The Israeli example of retaining consistent design on equal absolute valued coins is still extemely unique and interesting.

I was hoping for some more examples of consistency in design from the members.

Cheers
Rahul

Offline kumarrahul

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Re: Managing Currency Transition
« Reply #8 on: September 24, 2013, 03:49:48 PM »
Hi,

Attached is a pdf presentation I prepared illustrating this subject.  This will allow you to see the illustrations at high resolution.

https://docs.google.com/file/d/0By3J02pw-YfVU0hLc0p5SkpoN2s/edit?usp=drive_web

Best viewed at 200% zoom.

Cheers
Rahul


Offline <k>

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Re: Managing Currency Transition
« Reply #9 on: September 24, 2013, 03:56:20 PM »
Very well analysed, Rahul. I think this topic deserves to be upgraded to the Numismatics board, as it's not just about collecting but about important mint-driven changes, along with other factors.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

Offline kumarrahul

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Re: Managing Currency Transition
« Reply #10 on: September 25, 2013, 06:15:08 AM »
Thanks a lot.

I have been reading about transition of Oceania country coins (several of them transitioned from Australian/NZ coinage) and exhibit significant consistency.  Will try to document this in a summary, though am afraid I will not have coin representation from each to illustrate them.

Cheers
Rahul