Author Topic: Currencies with high nominal values  (Read 3747 times)

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Offline Harald

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Currencies with high nominal values
« on: November 11, 2011, 08:59:19 PM »
hello

here is a table of currencies with nominal value higher than the US-Dollar (represented by their ISO-4217 code -> Wikipedia).
most of them are somehow cheating, in the sense that the value has been pegged to some artificial ratio. this was often done
already in the 1970s at the breakdown of the Bretton-Woods system.

If we discard them the pound sterling (plus its 3 clones) comes first, before the euro and the Azerbaijani manat. The Swiss franc
and the Australian dollar are also floating, the rest is fixed.

cheers
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Harald
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Offline <k>

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Re: Currencies with high nominal values
« Reply #1 on: November 11, 2011, 09:36:46 PM »
After all the high inflation of the 1970s and 1980s (reaching a height of 32.5% in summer 1975), I am surprised that the UK still leads in real terms. As a child a small bar of chocolate used to cost me 6d (2½p); nowadays it's more like 50p.

The Cyprus and Maltese currencies used to be worth more than the UK's, I believe, before they joined the euro.
« Last Edit: November 11, 2011, 10:32:43 PM by coffeetime »
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Offline FosseWay

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Re: Currencies with high nominal values
« Reply #2 on: November 11, 2011, 10:27:00 PM »
Yes, they were. The Maltese lira IIRC was at about 57p sterling when the euro came in there.

The Irish punt was also more valuable than sterling at various times between floating and the euro.

I've often wondered why there aren't more currencies in the same nominal value bracket as sterling. OK, some are where they are for historical reasons, having never been revalued (such as the US and ex-British dominions' dollars, the euro, the Scandinavian currencies excluding Iceland, and so on). But it strikes me that if you're going to go to the trouble of revaluing a currency, as Turkey did not long ago, you value the unit such that 0.01 of it is a meaningful but small amount of money. This means that you use the full range of potential denominations and values and minimise the number of orders of magnitude required in calculations, and it also avoids confusing things like half-cents or using mills. The UK is now below this theoretical 'Goldilocks zone' as the penny is pretty pointless these days. I'd have thought the optimum value for the principal unit would be somewhere between US$5 and £5 -- say €5.

Offline Harald

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Re: Currencies with high nominal values
« Reply #3 on: November 12, 2011, 08:56:01 PM »
yes right, Malta did join the euro zone at a rate of 1 : 0.4293 and Cyprus at 1 : 0.5852

this underlines again that the exchange rate does not always reflect the economical power of a country.
Recently, Cyprus bonds have been down-rated to junk level. so, one can only be amazed that its currency
has appreciated by ~50% against the sterling since the 1970s.

cheers
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Harald
http://www.liganda.ch (monetary history & numismatic linguistics)

Online Figleaf

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Re: Currencies with high nominal values
« Reply #4 on: November 13, 2011, 12:40:38 AM »
The Saudi Rial beats all on your list. It has been the world's most expensive currency per unit for as long as I can remember.

The reason why GBP was always high on the list is the Carolingian £sd system. Before the first world war, many countries had a large silver coin comparable to the crown worth 5 units. Had the UK chosen to make the shilling its central value, rather than the pound, you would have seen more comparable exchange rates. At the time, the pound was a gold coin, while e.g. Mark, Franc, Frank etc. were all silver coins and gold was expressed in silver coin (e.g. a gold piece of ten Mark.)

A non-decisive, but contributing factor was British economic policy after the first world war: while other former belligerents allowed prices to climb, the UK adapted through unemployment. This created a vicious circle of strengthening GBP until the roaring thirties.

Peter
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Offline <k>

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Re: Currencies with high nominal values
« Reply #5 on: November 13, 2011, 01:55:34 AM »
A non-decisive, but contributing factor was British economic policy after the first world war: while other former belligerents allowed prices to climb, the UK adapted through unemployment. This created a vicious circle of strengthening GBP until the roaring thirties.

Peter

A policy which the euro zone is now repeating by default. You'll regret it when that man with the funny hair takes power in your country.  :(
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Online Figleaf

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Re: Currencies with high nominal values
« Reply #6 on: November 13, 2011, 02:03:53 AM »
Don't know. The relation between exchange rate and growth is still imperfectly understood. The US did well in the Clinton years, when the dollar was strong and it is stagnating now that the dollar is weak. Japan has seen the yen rise and rise seemingly without effect on (lack of) growth. The UK did well in the twenties when the pound was appreciating, badly in the seventies and eighties, when the pound was depreciating.

Best I can think of is that so much of the exchange rate effect leaks out of the system, that domestic factors dominate.

And I don't worry about funny-hair. My escape plans are ready. ;D

Peter
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Offline Bimat

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Currencies with high nominal values
« Reply #7 on: November 22, 2013, 04:06:20 PM »
¥500: the most expensive coin in the world, kinda

BY THOMAS DILLON

Japan . . . it’s not all raw fish. (Nice line. I wonder where I got it.)

No, it’s also home to all sorts of world records, like the world’s shortest escalator (a five-second ride in Kawasaki), the world’s oldest hotel (1,295 years and still going in Ishikawa) and the world’s largest mailbox (seven meters high and finished just this year in Ube, where maybe no one has yet heard of email).

And then one significant other, no doubt weighing you down even as you read: the ¥500 coin — the most expensive coin in the world!

Or rather, the “sometimes” most expensive coin in the world.

For everything is relative. Monetary value depends on the exchange rate and, should “Abenomics” ever switch gears into Abe-astro-economics, things might change — dramatically. One day ¥500 might be worth no more than a stick of gum. Or be enough to buy a Rolex. Who can say?

The economic pendulum may never swing quite so much, but the point is that this is sort of an ongoing race. Think of the ¥500 as Usain Bolt and the Swiss 5 franc coin as some other aspiring sprinter. At times the Swiss have a small lead, but in the long run, the smart money always rests on Bolt.

A bit more qualification: The ¥500 coin! The “sometimes” most expensive coin in the world! Among coins that matter.

For example, in 2011 Australia unveiled a new gold coin weighing more than a ton and worth well over ¥5 trillion.

Not many people carry these in their pockets. And if they did, I’d like to see them try to wrangle change at a 7-Eleven.

And then there are those rare collector coins, which are usually carried in armored trucks, not pockets.

So for all practical purposes — especially if you are in Japan and not Switzerland — the ¥500 is the king of coins.

“Personally, I hate it.”

The speaker is my Japanese wife, who hates very little in this world, other than this and maybe oatmeal.

“It’s too heavy and it takes up too much room in my purse.” I think she means the coin here, but this could be why she hates oatmeal as well.

Anyway, she always breaks her ¥500 coins into smaller denominations — which are no doubt heavier and take up much more room.

So I trade her all my loose change for any ¥500 coin she gets. For I am fond of that big coin, for a bevy or reasons. It’s a relationship I dub “The king and I.”

“What I do is to stick them in a big jar in my kitchen.” This is from a good friend who tells me how he treats the king. “And when the jar is full—

I jump in: “You rain coins from your window on all the peasants below? While laughing like a loon?”

“No. I blow it all. Take a short trip. Stay at a nice hotel. And so on.”

This same friend decorates his living room with a wall hanging made from his own used neckties when, for a jar full of coins, he could have had a genuine reproduction of any piece of art he wanted. Or far better neckties.

“So what do you do?” he asks.

Why, I spin them, of course. For no coin on Earth spins quite like the king.

“I sit in a coffee shop and spin a coin at my table. Over and over again. It’s the most fun ¥500 can buy.”

“What happens if it falls on the floor?”

“The king never falls! Besides, before he does, someone always begs me to stop.”

Or, I tell him, I place a coin over each eye. Nothing looks cooler.

“But how would you know? Your eyes are covered.”

“Photo Booth.”

“And aren’t coins on the eyes some sort of burial ritual?”

I admit that all my Photo Booth selfies look dead. With or without the coins.

“But the best thing to do with a ¥500 coin,” I tell him, you and all the world, “is to spend it.”

For no other single coin (see qualifiers above) has as much punch. I can go into a burger shop, for example, order a fat sandwich, a drink and fries, slap down a single coin and walk away with change. Which I then save to trade with my wife.

In a convenience store, ¥500 pumps you with options. You can buy . . . (cue Christmas music) four candy bars, three soda drinks, two cans of beers, or a bunch of miscellany!

With a ¥500 coin, money doesn’t talk, it roars!

How could the ¥500 coin be better?

Well, it could have a hole, like the ¥50 or ¥5 versions. Then it could be the ¥500 ring coin — stylish and commanding, just as a king should be.

Plus, with a hole, I would never need Photo Booth. I could see how stupid I looked with only a mirror.

Stupid but happy. A look that most coins just cannot buy.

Source: Japan Times
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Offline Ukrainii Pyat

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Re: Currencies with high nominal values
« Reply #8 on: November 22, 2013, 06:28:30 PM »
500 yen coin is fascinating coin, with good spending value outside of high prices in Tokyo.  I had to keep one for my collection from my travel in Japan.
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