Swiss franc
The first Swiss coins were released in 1850. Before this date, the different Swiss cantons had their own money, which different names and values. The technical details of Swiss coins, in particular the composition, have varied greatly over the years; however, the actual design of the coins has changed very little over their lifetime; for most of them (all except 5.- and 1/2 franc), their design has not changed since at least 1880.
Coins of 1/2 francs and above were made of silver until the mid-1960s; at that time, the price of silver raised significantly, so that the face value of the 1/2, 1 and 2 francs was below the value of the metal they were made of. Some people started to sell their silver coins abroad for melting, which prompted the federal government to make this practice illegal, and to require a new alloy to be used for these coins.[10]
A 2 centimes coin also used to exist, but it was last manufactured in 1974 and is not legal tender anymore. The 1 centime coin is still produced, but it does not play any role in the monetary system anymore. People and groups who can justify the use of 1 centime coins for monetary purposes can obtain them at face value; any other user (such as collectors) must pay an additional 4 centimes per coin to cover the production costs.
In 2005, the federal government announced its intent to remove from circulation the 1 and 5 centime coins, as their production costs exceed their face value. However, in the consultation procedure, this drew opposition from retailers and consumer groups, who were worried that the subsequent rounding would lead to price increases. In February 2006, it was announced that only the 1 centime coin would be removed from circulation, while the 5 centimes coin would still be produced.[11]
The text above is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Swiss franc"
Currency speculation
Type of speculators
Most non-professional traders lose money on speculation, while those who do make money tend to become professionals. Occasionally some dramatic event will occur such as the effort of the Hunt brothers to corner the silver market or the currency speculations of George Soros.
By some definitions, most long term investors, even those who buy and hold for decades, may be classified as speculators,[citation needed] excepting only the rare few who are not primarily motivated by eventually selling at a good profit. Some dedicated speculators are distinguished by shorter holding times, the use of leverage, by being willing to take short positions as well as long positions (in markets where the distinction can be reasonably made). A degree of speculation exists in a wide range of financial decisions, from the purchase of a house to a bet on a horse.
The text above is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Currency speculation"
Legal tender
Legal tender in Scotland
Scots law has, in effect, a broader concept of legal tender. Official legal tender is similar to that of England and Wales (Bank of England notes below the value of five pounds, and Royal Mint coins in varying amounts, but not any Scottish notes). However, since the smallest circulating Bank of England note is £5, the only way to pay large amounts in official legal tender is with £1 and £2 coins.
This is largely irrelevant, however, as creditors are obliged to accept any 'reasonable' settlement of the debt, be it banknotes (Scottish, English or otherwise), coins, cheques (which Scottish notes technically are) or even (in theory) property. In the event of a dispute, it would fall to a court to decide what 'reasonable' meant in the circumstances.
In general, Scottish and English notes and British coins will be accepted anywhere, with some large shops allowing the Euro to be used.
The text above is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Legal tender"
Central bank
Limits of enforcement power
Contrary to popular perceptions, central banks are not all-powerful and have limited powers to put their policies into effect. Even the US must engage in buying and selling to meet its targets. In the most famous case of policy failure, George Soros arbitraged the pound sterling's relationship to the ECU and (after making $2B himself and forcing the UK to spend over $8B defending the pound) forced it to abandon its policy. Since then he has been a harsh critic of clumsy bank policies and argued that no one should be able to do what he in fact did.
The most complex relationships are those between the yuan and the US dollar, and between the Euro and its neighbours. The situation in Cuba is so exceptional as to require the Cuban peso to be dealt with simply as an exception, since the US forbids direct trade with Cuba but US$ are ubiquitous in its economy.
The text above is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Central bank"