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Re: the theory of split currency
On Mon, 30 Sep 1996, Perry E. Metzger wrote:
> > 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...
I have heard "Divided currency" "Distinct Currency" "Seperated Currency"
all of which suggest to me that there is no real name.
> > 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.
Concur. I'm not even sure proponents of the idea have any idea what it is
supposed to do or what it infact does. It tends to be a cure-all type
measure for anything from money laundering prevention to capital
preservation. In reality about all it does is make it harder to do
business with and in said economies. It may be used, in the more
draconian states, to seperate treatment of those engaged in foreign
commerce from those not involved in international transactions (read rich
I hate lightning - finger for public key - Vote Monarchist