On Mon, 30 Sep 1996, James A. Donald wrote:
Fred Foldvary <ffoldvar@jfku.jfku.edu> 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?
Does anyone know of any country which has had such a split currency?
Many third world nations employed this system, one currency for internal use only, and one currency for international transactions. The international currency was sometimes denominated in hard currency, and reasonably convertible into it.
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I speculate that this is because people find that they *must* obtain foreign currency, the internal currency being unspendable, and any method available to them for obtaining foreign currency is a criminal offense.
This is just another method of a fixed exchange rate system, with the inevitable resulting black market for foreign currency. Just my US$0.02 :) -r.w.