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Adapt Currency Work: easy document editing

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2015-11-06
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Official currency substitution or full currency substitution happens when a country adopts a foreign currency as its sole legal tender, and ceases to issue the domestic currency. Another effect of a country adopting a foreign currency as its own is that the country gives up all power to vary its exchange rate.
The main reason for polarization is to receive the benefits of greater stability in the value of currency over a country's domestic currency. Another aspect of polarization is that the country gives up some of its ability to influence its own economy through monetary policy by adjusting its money supply.
The most common reason is that the government has inflated its money so much that no one wants to hold or accept it. It would either switch to using another country's money (look up polarization) or issue a new currency with a promise to be good this time around.
The value of a country's currency is largely decided by market forces and is linked with its economic conditions and policies such as economic stability, inflation, foreign trade, employment, interest rates, growth rate and geopolitical conditions. The numerical value of a currency is different from its trade value.
3 Answers. Yes, they can. There are many countries that do not have their own national currency, as described for instance in this article. There are basically two ways of adopting a non-national currency.
Originally Answered: Do any countries not have a currency? All nations use currency of some kind, but there are many nations which do not issue currency of their own. Ecuador, East Timor, El Salvador, the Marshall Islands, Micronesia, Paley, Turks and Pieces, and the British Virgin Islands all use the U.S. dollar.
3 Answers. Yes, they can. There are many countries that do not have their own national currency, as described for instance in this article. There are basically two ways of adopting a non-national currency.
Because some countries take pride in using own currency than universal currency. But uniform currency all over the world eliminates the uncertainty of exchange rates. And interest rates and inflation will be minimum. When the demand for currency is more, that means value of currency is more.
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