Author Topic: There are only four basic currency systems in the world  (Read 35243 times)

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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #45 on: July 11, 2010, 11:52:19 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.

From Wikipedia:

The second series of renminbi banknotes was introduced in 1955. During the era of the command economy, the value of the renminbi was set to unrealistic values in exchange with western currency and severe currency exchange rules were put in place. With the opening of the mainland Chinese economy in 1978, a dual-track currency system was instituted, with renminbi usable only domestically, and with foreigners forced to use foreign exchange certificates. The unrealistic levels at which exchange rates were pegged led to a strong black market in currency transactions.

In the late 1980s and early 1990s, the PRC worked to make the RMB more convertible. Through the use of swap centres, the exchange rate was brought to realistic levels and the dual track currency system was abolished.


Source:

http://en.wikipedia.org/wiki/Renminbi
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #46 on: July 12, 2010, 12:18:05 PM »
I got my Timor coins years ago in Lisbon and was told they never reached Timor. Maybe that has changed now?

Peter

I've just been speaking to a couple who work in East Timor. They said that at first US bills and coins circulated, then the Timorese introduced their own coins. The US coins no longer circulate, and of the Timorese coins, the one centavo coin is now rarely seen.
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Online Figleaf

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Re: There are only four basic currency systems in the world
« Reply #47 on: July 12, 2010, 12:32:56 PM »
Good for Timor. For countries to succeed, they need first to stay out of the headlines, yet continually make progress, even as little as having your own money circulate. Now let's see how they do on corruption...

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

Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #48 on: July 13, 2010, 08:48:45 PM »
Not sure about Timor Leste, but Ecuador and Panama do have "their own" coins along with USD coins, and they are actually used there. (From what I have heard and read, that is.)

Christian

So now we know that, of the three known dollarised countries that use their own coinage, Panama and Ecuador also use US coins, but Timor Leste does not. Do we know of any other dollarised countries that use US dollar bills but circulate their own national coinage?
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Online Figleaf

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Re: There are only four basic currency systems in the world
« Reply #49 on: July 13, 2010, 08:58:21 PM »
This is known as a fixed exchange rate. China is an example. Look here for more information.

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

Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #50 on: July 13, 2010, 09:06:24 PM »
This is known as a fixed exchange rate. China is an example. Look here for more information.

Peter

Of those with a fixed rate, there are states that are dollarised, and therefore presumably have neither a central bank nor a currency board, and those, such as the Bahamas and Bermuda, that presumably do have a currency board, since they issue their own notes and coins but use the US dollar as an anchor currency. So there are categories within categories.
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #51 on: July 18, 2010, 02:19:26 PM »
I've just been speaking to a couple who work in East Timor. They said that at first US bills and coins circulated, then the Timorese introduced their own coins. The US coins no longer circulate, and of the Timorese coins, the one centavo coin is now rarely seen.

A comparison of the diameter of the US coins and the Timor coins shows that the Timorese always intended that the two coinages would NOT circulate in tandem:

1 ctvo     17mm
5 ctvos    18.8mm
10 ctvos  20.8mm
25 ctvos  21.3mm
50 ctvos  25mm

Cent          19mm
Nickel         21.2mm
Dime          17.9mm
Quarter      24.3mm
Half dollar   30.4mm

They are of different sizes. Now, in the two countries where the national coinage DOES circulate in tandem with US coinage (Panama and Ecuador), do coins of a matching face value or denomination also match in size? Does anyone know?



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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #52 on: July 22, 2010, 01:45:37 PM »
I have amended reply#3 in this topic, to incorporate a point that forum member Engipress makes in his topic, Coins of the East Caribbean States:

Unlike the euro, the coins of some currency unions, for instance those of the East Caribbean states, do not include any national identifiers on their coins; although the coins of the East Caribbean states circulate throughout all the member states, the legend on the coins reads only "East Caribbean States" and does not identify any individual state or nation. So, the euro allows more design variation than the East Caribbean States, which has only one standard set of designs for all its member states.
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Offline Ukrainii Pyat

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Re: There are only four basic currency systems in the world
« Reply #53 on: July 22, 2010, 03:36:55 PM »
So now we know that, of the three known dollarised countries that use their own coinage, Panama and Ecuador also use US coins, but Timor Leste does not. Do we know of any other dollarised countries that use US dollar bills but circulate their own national coinage?

Panama also circulates it's own coinage which is the same dimensions and composition as USA coinage.  Occasionally I will find a Panamanian coin in change, usually a centavo or 1/10th Balboa.  Last week I got a Barbados cent in a box search.
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Offline Bimat

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There are only four basic currency systems in the world
« Reply #54 on: July 22, 2010, 04:11:55 PM »
There's no monetary agreement between India and Nepal as such,but Indian currency is widely accepted (and is legal too) in Nepal.Recently,the Nepalese government has banned the two high denominated Indian banknotes (500 and 1000 Rupees),and carrying them is a offence now,which may put you behind bars for 3 years!

I have also heard that some Bangladeshi shopkeepers accept Indian currency,but I can't confirm.

Aditya
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #55 on: July 22, 2010, 05:06:26 PM »
Panama also circulates its own coinage which is the same dimensions and composition as USA coinage.  Occasionally I will find a Panamanian coin in change, usually a centavo or 1/10th Balboa. 

Thanks for the update, scottishmoney. Now I just need to find out the relative sizes of the USA and Ecuadorian coinage.
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #56 on: July 22, 2010, 05:09:04 PM »
There's no monetary agreement between India and Nepal as such,but Indian currency is widely accepted (and is legal too) in Nepal.

On various occasions in Europe I've found that the currency of one country is accepted just across the border. For instance in 1987, the Austrians in Innsbruck were quite happy to accept German money from me.

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Offline chrisild

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Re: There are only four basic currency systems in the world
« Reply #57 on: July 22, 2010, 10:33:53 PM »
That is pretty common in many "border" areas. Before we had the euro, many stores in Dutch cities "near Germany" would accept marks, and the other way round. But of course you could never be sure whether they did or not, and of course the exchange rate had a "convenience fee" built in. Fortunately those days are over. Also, in the Öresund region (Copenhagen/Malmö) quite a few places accept the money of the neighbors so to say. But with plastic that is not a big issue anyway. :)

Christian

Offline Ukrainii Pyat

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Re: There are only four basic currency systems in the world
« Reply #58 on: July 23, 2010, 12:08:49 AM »
Around where I live we take Canadian coins, but usually not paper money unless in a shopping centre that attracts many Canadian citizens.  It is good for me since several of the businesses in the shopping centre bank with one of my banks and deposit their Canadian cash there.  I get calls when older, ie Series 1954 notes come in.

Canadian coins in our change is fairly common occurrence.  There is benefit since Canadians don't seem to collect or care about older coins and occasionally I come across George V cents(pre-1936) or George VI(1937-52) in the change.
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Offline <k>

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Re: There are only four basic currency systems in the world
« Reply #59 on: July 25, 2010, 12:36:17 PM »
Panama also circulates its own coinage which is the same dimensions and composition as USA coinage.  Occasionally I will find a Panamanian coin in change, usually a centavo or 1/10th Balboa.  Last week I got a Barbados cent in a box search.

I've checked online the size and weight of the coinage of Ecuador, and their coins match the corresponding US coins in size and weight. Both sets of coins do circulate in Ecuador. The only difference is in the metal content:

Ecuadorian coins

  • 1  centavo -   brass
  • 5  centavos -  steel
  • 10 centavos - steel
  • 25 centavos - steel
  • 50 centavos - steel

I do not know whether the Ecuadorian one sucre coin circulates in Ecuador.

Ecuadorian Sucre Coin.
Metal: Nickel Clad Steel
Diameter: 30.5 mm   
Weight: 11.25 g

US Dollar Coin.
Metal: Copper 88.5%; Zinc 6%; Manganese 3.5%; Nickel 2%
Diameter: 26.5 mm   
Weight: 8.1 g
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