Currency unions

Started by <k>, March 08, 2023, 08:39:44 PM

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<k>

CURRENCY UNIONS.

Currency unions exist as two types:

1] Unilateral currency union.

This is the adoption by one country of the money of another, without consent or agreement.

For instance, Kosovo and Montenegro have unilaterally adopted the euro.

They did this without any prior arrangement with the EU or the eurozone countries.

They do not have their own national currencies.


Ecuador and El Salvador unilaterally adopted the US dollar.

Countries that use the US dollar unilaterally are called "dollarised".

This describes any country that uses a foreign currency instead of creating or maintaining its own.


2] Multilateral monetary union.

a) Multilateral, with a common policy – the establishment by multiple countries of a common monetary policy and a monetary authority for their common currency. A good example is those EU members who have adopted the euro. Not all members of the eurozone are also members of the EU.

b) Adoption of a foreign currency by virtue of a bilateral or multilateral agreement with the monetary authority, sometimes supplemented by the issue of a local currency in a currency peg regime. A good example is the eurozone countries of Andorra, Monaco and San Marino. They are not members of the EU, but they have an agreement with the EU that allows them use the euro and to mint euro coins with their own national designs.
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<k>

#1
EAST CARIBBEAN DOLLAR

Member states


1] Anguilla

2] Antigua and Barbuda

3] Dominica

4] Grenada           
                               
5] Montserrat

6] St Christopher and Nevis

7] St Lucia

8] St Vincent and the Grenadines




Common coinage of 1996.


All the members of the East Caribbean States currency union use the same set of coins and the same set of banknotes.
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<k>

#2
T H E  E U R O


The common side of the standard circulation euro coins.




The national side of the Croatian euro coin series.


Euro coins.jpg

The national side of some 1 euro coins of the eurozone.


Meanwhile, the euro zone has one common set of banknotes.

However, each eurozone country has its own euro coins minted with a special national design side.

All these euro coins are legal tender in, and circulate in, all the countries of the eurozone.


See also:  The euro: Present and future.
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<k>

#3
CFA FRANC.

Central African CFA franc

1] Cameroon
2] Central African Republic
3] Chad
4] Republic of the Congo
5] Equatorial Guinea
6] Gabon.



West African CFA franc

1] Benin
2] Burkina Faso
3] Côte d'Ivoire
4] Guinea-Bissau
5] Mali
6] Niger
7] Senegal
8] Togo



Here we have two more currency unions, this time in Africa.

The CFA franc: CFA stands for "Franc of the Financial Community of Africa".


The CFA franc: is the name of two currencies:

1] the West African CFA franc: used in eight West African countries

2] the Central African CFA franc, used in six Central African countries.



Curiously, the two francs are kept at par, but the coins do not co-circulate in each other's currency zone.

However, just as in the monetary union the East Caribbean States, one set of coins and banknotes serves all the member states of each individual area.
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<k>



Numista tells us that the country of issue was briefly indicated on the 500 francs coins of the CFA franc of the Central African States.
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See: The Royal Mint Museum.

<k>

#5
Central African CFA franc.jpg

The coins of the CFA franc of the Central African States.
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See: The Royal Mint Museum.

<k>

#6
West Africa CFA franc.jpg

The coins of the CFA franc of the West African States.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

#7


The coinage of the French Pacific Territories.


The French Pacific Territories comprise:

  New Caledonia, French Polynesia, and Wallis and Futuna.


These territories issued a new joint coin series in 2021.

See:  French Pacific Territories: coinage since September 2021.
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<k>

#8
Panama-.jpg

Panamanian circulation coins.


Panama is dollarised. Its sole currency is the US dollar.

However, it uses its own coins alongside US coins.

The Panamanian coins are of the same size or weight as their US counterparts.

There are no Panamanian banknotes.


The Panamanian coins are denominated in balboas and centésimos.

100 centésimos equal one balboa. The balboa is equivalent in value to one US dollar.

A 10 centésimos coin is equivalent in value to a US dime, and so on.
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<k>

#9


Circulation coins of Timor Leste.


Timor Leste is dollarised. Its sole currency is the US dollar.

There are no Timorese banknotes, only US bills.

However, Timor Leste uses its own coins.

US coins do not circulate in Timor Leste.





Timor Leste.  200 centavos coin.


One centavo is equivalent to one US cent.

All Timorese coins are denominated in centavos only.

The Timorese 200 centavos coin is equivalent in value to two US dollars.
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<k>

#10
DOLLARISED COUNTRIES THAT ISSUE THEIR OWN COINS

Ecuador, Panama and Timor Leste are the only dollarised countries that issue their own circulation coins.

These circulate alongside US dollar bills.
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<k>

#11


South Africa, 1 rand, 1998.


The Common Monetary Area (CMA) links South Africa, Namibia, Lesotho and Eswatini into a monetary union. It is allied to the Southern African Customs Union (SACU).

Although the South African rand is legal tender in all states, the other member states issue their own currencies: the Lesotho loti, Namibian dollar and Swazi lilangeni. These are exchanged at par with the rand.

Only the rand is legal tender in South Africa. The Lesotho loti, Namibian dollars and Swazi lilangeni are not accepted in South Africa. However, the rand is accepted in Namibia, Lesotho and Eswatini. It seems that the rand is king currency in this currency union. Is there a technical name for that role?
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<k>

#12


Malaya and British Borneo, 1 cent, 1961.


From Wikipedia:

A currency union among the British colonies and protectorates in Southeast Asia, namely the Federation of Malaya, North Borneo, Sarawak, Singapore and Brunei was established in 1952. The Malaya and British Borneo dollar, the common currency for circulation was issued by the Board of Commissioners of Currency, Malaya and British Borneo from 1953 until 1967. Following the cessation of the common currency arrangement, Malaysia (the combination of Federation of Malaya, North Borneo, Sarawak), Singapore and Brunei began issuing their own currencies.


See also:

1] British North Borneo

2] Coinage of Malaysia

3] Coinage of Singapore

4] The British Rajahs of Sarawak

5] The Coinage of Malaya

6] One of a kind: Malaya and British Borneo 1 cent coin of 1962
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<k>

#13
The Netherlands Antillean guilder.

The Netherlands Antillean guilder was the currency of the Netherlands Antilles. It continued to circulate after the dissolution of the Netherlands Antilles in October 2010.

Bonaire, Sint Eustatius, and Saba adopted the U.S. dollar directly on 1 January 2011.

That leaves Curaçao and also Sint Maarten. They still use the anachronistic Netherlands Antillean guilder. Apparently the US dollar is readily accepted on both these Caribbean islands.

Sint Maarten is only one half of an island - the other half, Saint Martin, belongs to France. Curaçao and Sint-Maarten separately opted to become autonomous constituent countries of the Kingdom of the Netherlands.

The Caribbean guilder is the proposed new joint currency of Curaçao and Sint Maarten. Currently the target date for the issue of the new currency is 2024. However, the currency has been planned since January 2011, so I will believe it when I see it. Probably little Curaçao and Sint Maarten would do better simply to adopt the US dollar as their currency.



Netherlands Antilles set.jpg 



Netherlands Antilles set-.jpg
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<k>

#14
THE STERLING AREA


Sterling area.jpg


The following UK dependencies and overseas territories exist in an asymmetric currency monetary union with the UK:

1] The crown dependencies of Jersey, Guernsey, and the Isle of Man.

2] The British overseas territories of Gibraltar, the Falkland Islands, and St. Helena and Ascension.


These seven coinages (the UK coinage and the other six) all have coins of the same denominations, with matching size, shape, weight and metal content. They all show a portrait of the UK monarch on the obverse. They are all exactly equal in value. The UK's coins and banknotes are accepted in all these six locations. Jersey and Guernsey accept each other's coins and notes, but none of the other dependencies and overseas territories do: Falklanders will not accept Gibraltarian money, and vice versa, etc.

See:  The Decimal Coins of the Sterling Area.
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