Post
Topic
Board Economics
Re: One of the biggest problem Now with currencies
by
teosanru
on 08/10/2020, 20:35:26 UTC
The third world countries such us kyrksitan is that the currencies has no value.
So You Can't Even Exchange them to other currencies... What They do about it?

Its Not spoken problem much but its a problem
I think first of all you are talking about Kyrgyzstan. Well it has a well defined currency Pegged at 80 Som to 1 USD. What makes you say it's a worthless currency?
What are you currently using to trade if the currency doesn't have an international rate, can you still use it?

How much is food for example on average per person per month (or how much is a kilo of sugar, flour, potatoes (or equivelant)... Etc?

What's the priblem with not being able to convert? Does no one sell usd for it?


But who will want worthless currencies? 
Actually nobody!
You don't see a world's currency value with respect to other currencies but you see it in respect to the purchasing power parity of that country. If we go by what you say 1 USD = 42000 Iranian Rial but does that makes their currency worthless? No it doesn't because the price level of the economy is adjusted accordingly and 42000 Rial would buy you pretty much the similar things that you could buy using 1 USD. You are comparing 1 ADA to 1 BTC and saying ADA is worthless. Which doesn't makes sense.