From: dlv@bwalk.dm.com (Dr.Dimitri Vulis KOTM)
Date: Tue, 1 Oct 1996 07:56:41 +0800
To: cypherpunks@toad.com
Subject: Re: the theory of split currency
In-Reply-To: <199609301523.LAA15152@jekyll.piermont.com>
Message-ID: <mDX3uD2w165w@bwalk.dm.com>
MIME-Version: 1.0
Content-Type: text/plain


"Perry E. Metzger" <perry@piermont.com> 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.

---

Dr.Dimitri Vulis KOTM
Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps