Author Topic: There are only four basic currency systems in the world  (Read 35250 times)

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Offline andyg

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Re: There are only four basic currency systems in the world
« Reply #30 on: June 26, 2010, 01:45:34 AM »
I got my Timor coins years ago in Lissabon and was told they never reached Timor. Maybe that has changed now?

Peter

Interesting you bought them in Lisbon, that's where they were struck.
This document sets out their acceptance by law in Timor-Leste
http://www.bancocentral.tl/Download/Regulations/BPA-Pub-Inst-2004-01en.pdf

« Last Edit: October 03, 2015, 11:34:17 AM by Niels »
always willing to trade modern UK coins for modern coins from elsewhere....

Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #31 on: June 26, 2010, 01:49:23 AM »
According to that document, both US and Timorese coins are legal tender (up to certain amounts) in Timor Leste, so they obviously circulate in tandem.
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Offline andyg

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Re: There are only four basic currency systems in the world
« Reply #32 on: June 26, 2010, 01:55:47 AM »
just in case you are interested, here is the bank website, took some finding!
« Last Edit: October 03, 2015, 11:41:50 AM by Niels »
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #33 on: June 28, 2010, 09:54:49 PM »
So, there are dollarised countries that issue their own national coins. We have seen that Timor-Leste, for instance, issues centavo coins, where 100 centavos = 1 US dollar. The centavos coins come in the same denominations as their US cent counterparts. This makes sense. I assume this will be the same with all dollarised countries that issue their own coins, e.g. Ecuador, Panama, and whoever else. Or does anybody know of any exceptions here?

I now want to look at non-dollarised countries: specifically countries that use currency boards, and whose currency is linked to the anchor currency at a rate of one to one. A good example is Gibraltar. Its Gibraltar pound sterling is linked to its anchor currency, the UK pound sterling, at a rate of one to one. Gibraltar issues its coins and notes in the same denominations as the UK. I know that the coins are minted to the same specifications (size, weight, metal content). I can add the UK overseas territories of a] the Falkland Islands and b] Saint Helena and Ascension to that list. As for countries that run currency boards and whose currencies have a one to one peg to the dollar, I can name the Bahamas and Bermuda as two, but I don't know the whole list.

What I am wondering is whether all the currency board countries whose currencies have a one to one peg to their anchor currency issue coins to the same specifications, and in the same denominations, as their anchor currency counterparts. When I say "the same specification", I mean apart from the designs, as these will emphasise the culture of the country issuing them.

Does anyone have any thoughts or answers?

« Last Edit: July 18, 2010, 03:17:02 AM by E.M.U. »
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #34 on: June 28, 2010, 10:03:59 PM »
Apparently the Brunei dollar is linked to the Singapore dollar at a rate of one to one. To my knowledge, the Brunei coin denominations go up to only 50 cents. Does anyone know whether they match their Singapore counterparts in terms of size and shape? I have seen dollar coins for Singapore, but do not know whether they circulate.
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Offline andyg

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Re: There are only four basic currency systems in the world
« Reply #35 on: June 28, 2010, 10:39:28 PM »
Apparently the Brunei dollar is linked to the Singapore dollar at a rate of one to one. To my knowledge, the Brunei coin denominations go up to only 50 cents. Does anyone know whether they match their Singapore counterparts in terms of size and shape? I have seen dollar coins for Singapore, but do not know whether they circulate.

They used to match, but Singapore reduced the size of it's coins in 1985 to distinguish them from the Malay coins.

Another monetary area is that of Swaziland / Lesotho / Namibia and South Africa - though the coins are of different sizes.
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #36 on: June 28, 2010, 10:48:11 PM »
It seems illogical to me to make them different sizes when there is a one to one link between the currencies. What were they thinking of?
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Austrokiwi

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Re: There are only four basic currency systems in the world
« Reply #37 on: June 29, 2010, 04:49:18 AM »
It seems illogical to me to make them different sizes when there is a one to one link between the currencies. What were they thinking of?

AS we are not dealing with Specie based currencies I think the answer is they needed to distinguish between the coins so that people did not pass off coins as being from one country when in fact they were from another.

Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #38 on: June 29, 2010, 10:40:05 AM »
AS we are not dealing with Specie based currencies I think the answer is they needed to distinguish between the coins so that people did not pass off coins as being from one country when in fact they were from another.

But since the coins are of the same value, and the country name will be included in the legends, just what is the risk or the real issue here?
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Offline chrisild

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Re: There are only four basic currency systems in the world
« Reply #39 on: June 29, 2010, 11:14:39 AM »
No idea if identical specifications would actually be a risk, but in Namibia for example the South African Rand (ZAR) is legal tender, and pretty widely used. The Namibian Dollar (NAD), however, is not legal tender in South Africa, and accepted in some border regions only. Here is a document that explains the current* situation: http://www.finforum.co.za/regional/bispap17o.pdf

(* That file is dated May 2003; don't know whether there have been any major changes between then and now.)

Christian

Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #40 on: June 29, 2010, 11:28:41 AM »
Thanks for that, Christian. So the word "unilateral" comes to mind. For instance, Jersey is in currency union with the UK - but the UK is not in currency union with Jersey! Ridiculous, considering that Jersey money is UK sterling and worth exactly the same. Jersey coins are not legal tender in the UK, but a few escape into circulation because they look very similar. Gibraltar is NOT in currency union with the UK, but it is pegged at a rate of 1 to 1 to the UK pound. Again, the Gibraltar currency is not legal tender in the UK, but their coins escape into circulation in the UK often enough.
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #41 on: June 29, 2010, 11:48:56 AM »
Yes, the territories that use their own versions of the UK pound are:

1] The Crown Dependencies: Jersey, Guernsey, and the Isle of Man.

2] Three UK overseas territories: Gibraltar, the Falkland Islands, and Saint Helena and Ascension.

There are other overseas territories that issue collector coins only. I have mentioned only those three that have their own coins actually circulating.

The Crown Dependencies happily accept each other's notes and coins. The UK overseas territories do not! All of them accept UK coins and notes.
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Offline devondad93

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Re: There are only four basic currency systems in the world
« Reply #42 on: July 05, 2010, 07:19:01 AM »
I think I am not here to disagree on what you have mentioned in your post. I am here to agree on you because you are perfectly right! Of course, most money no longer physically exists and coins and banknotes have a negligible absolute intrinsic value, but I don't see how it has changed function.

Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #43 on: July 11, 2010, 01:44:45 PM »
A variation on the state or national currency is the system of two currencies operated in Cuba. One is called the national peso, which is used by Cubans; the other is the convertible peso, used mainly by tourists, and which is worth roughly 25 times more than the national peso.

Cuba even issues the two currencies with different designs. Here is a type set of the convertible peso coinage.

Does anybody know of any countries that issue their coins in two flavours, so to speak?
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Offline Figleaf

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Re: There are only four basic currency systems in the world
« Reply #44 on: July 11, 2010, 01:50:31 PM »
Not coins, but I used "tourist yuan" in China when I first went there. They were very popular, because they were convertible in other currencies. I kept a set, but traded them away. I presume the reason for issuing the Cuban tourist money is the same.

On a more virtual level, my first bank account in France (I still have it) was in convertible Francs, which was important, because the Franc was at the time not fully convertible, but currency smuggling was rampant. Each time I withdrew money from the account, I was given a formal warning that cash was not fully convertible.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.