| Author |
 Topic  |
|
|
Nickelless
Administrator
USA
5580 Posts |
|
|
pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 03/08/2008 : 13:34:05
|
My best guess, and it is only a guess, is to look to South America or Mexico for an idea on how this is done.
First, the government would make an official announcement that after a certian date the old currency would no longer be accepted or would lose its legal tender status.
Second, the official announcement would issue instructions on how to exchange the old money for new, the banks would do the exchange, old bills for new, the amounts in bank accounts would be recalcualted to reflect the new currency (3 old pesos would turn into 1 new peso for example.)
I think that is pretty much how it was done in europe to exchange different currencies into one Euro.
(Some days I can't spell worth a dran.) |
Edited by - pencilvanian on 03/08/2008 13:36:44 |
 |
|
|
Nickelless
Administrator
USA
5580 Posts |
Posted - 03/08/2008 : 23:58:02
|
OK, one question running through my head...
I know that some countries--the Netherlands, for one--have resisted joining the EU, and so they wouldn't be subject to a change to the euro until they join the EU. Other than ratifying a treaty creating the North American Union, or the more likely scenario, IMO, hyperinflation, are there any other circumstances that would compel the government to call for a change of currency? |
Visit my new preparedness site: Preparedness.cc/SurvivalPrep.net
--Latest article: Stocking up on spices to keep food preps lively
---------------
Be prepared...and prepared to help: http://www.survivalblog.com/charity.html
Are you ready spiritually for hard times? http://www.jesusfreak.com/rapture.asp |
Edited by - Nickelless on 03/08/2008 23:59:53 |
|
|
|
pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 03/09/2008 : 11:38:13
|
"Other than ratifying a treaty creating the North American Union, or the more likely scenario, IMO, hyperinflation, are there any other circumstances that would compel the government to call for a change of currency?"
Trying to keep one step ahead of counterfieters is one reason (hence the reason the greenback is now referred to as the "peachback" due to the major change in its color and design.) |
|
|
|
Nickelless
Administrator
USA
5580 Posts |
 Posted - 03/09/2008 : 16:33:27
|
quote:
Originally posted by pencilvanian
"Other than ratifying a treaty creating the North American Union, or the more likely scenario, IMO, hyperinflation, are there any other circumstances that would compel the government to call for a change of currency?"
Trying to keep one step ahead of counterfieters is one reason (hence the reason the greenback is now referred to as the "peachback" due to the major change in its color and design.)
I'm not talking about redesigning the dollar--the old bills are still legal tender--I'm talking about the circumstances under which the dollar would be done away with for a new currency, the amero or whatever, other than hyperinflation or the creation of the North American Union. |
Visit my new preparedness site: Preparedness.cc/SurvivalPrep.net
--Latest article: Stocking up on spices to keep food preps lively
---------------
Be prepared...and prepared to help: http://www.survivalblog.com/charity.html
Are you ready spiritually for hard times? http://www.jesusfreak.com/rapture.asp |
Edited by - Nickelless on 03/09/2008 16:41:48 |
|
|
|
n/a
deleted
192 Posts |
Posted - 03/09/2008 : 17:59:33
|
You must be logged in to see this link.
The Netherlands was one of the original six members of European Coal and Steel Community.
You must be logged in to see this link.
It was an Original member of the Euro currency area.
Switzerland and THe United Kingdom are the ones that have not joined the Monetary Union.
|
.....................................................................................................................
The market can stay irrational longer than you can stay solvent.
John Maynard Keynes,
English economist (1883 - 1946)
|
Edited by - n/a on 03/09/2008 18:00:15 |
|
|
|
fiatboy
Administrator
912 Posts |
Posted - 03/09/2008 : 20:58:23
|
| They give people a window of time in which to exchange and spend the old currency, and then everyone must switch to the new one. Some countries, like Germany for instance, have an indefinite exchange policy and still allow people to exchange the old currency. The old bills are shredded or burned, the coins are melted or demonetized (usually via the infamous "waffling" process), and accounts held electronically are simply converted to the new rate, which historically, is not very favorable. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
|
|
|
Cerulean
Penny Hoarding Member
USA
993 Posts |
Posted - 03/10/2008 : 08:06:56
|
quote:
Originally posted by me2
Switzerland and the United Kingdom are the ones that have not joined the Monetary Union.
...and Sweden, Norway, and Denmark. |
Sorting Map
2010 First Finds Contest
Are you a Buffalo Hunter?
Wanna take seignorage away from the Fed? Spend *any* coins!
We cannot afford this government.
Cerulean's Standing Offer: $3/lb shipped for foreign coins |
|
|
|
fiatboy
Administrator
912 Posts |
Posted - 03/10/2008 : 16:06:31
|
....and Estonia, Bulgaria, Croatia, Slovakia, Lithuania, Hungary, Poland, Latvia, the Channel Islands, Serbia, the Czech Republic, and Romania.
It's actually quite complex. Not all EU member countries use the Euro. Some have not met the "convergence criteria" in order to adopt the currency. In other words, their economies must become more stable. Some non-EU countries unofficially use the Euro. For example, Andorra is not a member of the EU, but people in Andorra use the Euro.
The only microstates of Europe that are EU members are Luxembourg and Malta. San Marino, Monaco and the Vatican City, although not members of the EU, officially use the Euro and have their own Euro coins. Liechtenstein, which officially uses the Swiss Franc, is not a EU member, but it is a member of the European Economic Community (EEC), which is not to be confused with the EU. Iceland is also a member of the European Economic Community, but not the EU, and it uses the krona.
It's actually even more complex than that. For example, the Faroe Islands are not members of either the EU or the EEC, but it is an autonomous Danish province. Citizens of the Faroe Islands are not EU members unless they move to ANY of the EU countries, at which point they can choose to automatically become members. Citizens of Aruba are EU citizens, even though they live in the South Caribbean.
This is just the tip of the iceberg, but you get the picture. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
|
|
| |
Topic |
|
|
|
How do countries change currencies?
Forum Locked
