Shadow currency

The term shadow currency is a term that denotes the currency of an industry that is not the official currency of the associated state or an association of several . It therefore differs from the legal tender in the region.

advantage

The shadow currency enables the population to obtain goods or services for which the local currency is insufficient. A shadow currency in the form of a very common currency such as the dollar or the euro (formerly the German mark, especially during and after the wars in the Balkans ) is also often used when the local currency is subject to high inflation .

disadvantage

The shadow currency is displacing its own national currency considerably in certain economic sectors, which can considerably weaken the GDP of the emitting state.

example

In Cuba , around one million people illegally owned US dollars before 1993 . Cubans in exile sent money in the form of American currency to the isolated social economy to benefit their relatives there. The US dollar was legalized in 1993 and has been the official Cuban parallel currency ever since .

Individual evidence

↑ Frank Becker: The D-Mark entered our lives 60 years ago . Retrieved on November 4, 2009: "For fifty years the mark was valued in the world, in later years it increasingly competed with the dollar and in times of crisis it was the shadow currency in the Balkans, and in Kosovo in 1999 it was even an official currency"

Web links

Jumble of currencies at Zeit.de

[1] Frank Becker: The D-Mark entered our lives 60 years ago . Retrieved on November 4, 2009: "For fifty years the mark was valued in the world, in later years it increasingly competed with the dollar and in times of crisis it was the shadow currency in the Balkans, and in Kosovo in 1999 it was even an official currency"