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Re: the theory of split currency
Dr.Dimitri Vulis KOTM wrote:
> "Perry E. Metzger" <[email protected]> writes:
> > > Is there a name for a dual or split currency, in which
> > > there is one currency for domestic use and another, different
> > > appearing, currency for foreign usage?
> > I don't know of such a name, however...
> > > Does anyone know of any country which has had such a
> > > split currency?
> > ...this has been a common situation, in fact. South Africa, China, the
> > Soviet Union, and other unpleasant places have repeatedly done
> > this. Its usually a remarkably stupid idea.
> > Perry
> Several Western European countries had such split currencies after WW II.
> Belgium's two francs have almost been phased out. Spain is the only major
> country with two currencies (ESP and ESB). They actually fetch slightly
> different interest rates.
> Chile introduced 'unidad de fomento' a while back, and many other minor
> players do something similar.
Art Bell of late-night talk radio has been promoting the theory that the
U.S. Govt. is going to do this soon. Supposedly the U.S. taxpayers will
prop up the external dollars, which get the best exchange rate.