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100-443: (Alongside the Singapore dollar ) (SGD) (Alongside the Brunei dollar ) (BND) On 15 January 1520, the Kingdom of Bohemia began minting coins from silver mined locally in Joachimsthal and marked on reverse with the Bohemian lion . The coins would be named Joachimsthaler after the town, becoming shortened in common usage to thaler or taler . The town itself derived its name from Saint Joachim , coupled with

200-631: A lion head watermark, and the signature of the Minister for Finance and chairman of the BCCS, on the front of the note. As an added security feature, all notes have a vertically embedded security thread. The current Portrait series was introduced in 1999, with the one- and 500-dollar denominations omitted. These notes feature the face of Yusof bin Ishak , the first president of the Republic of Singapore, on

300-451: A liquidity trap , large monetary injections are like "pushing on a string". The task of keeping the rate of inflation small and stable is usually given to monetary authorities . Generally, these monetary authorities are the national banks that control monetary policy by the setting of interest rates , by open market operations , and by the setting of banking reserve requirements . A fiat-money currency greatly loses its value should

400-596: A circulating medium of exchange. As the finances of the French government deteriorated because of European wars, it reduced its financial assistance to its colonies, so the colonial authorities in Canada relied more and more on card money. By 1757, the government had discontinued all payments in coin and payments were made in paper instead. In an application of Gresham’s Law – bad money drives out good – people hoarded gold and silver, and used paper money instead. The costs of

500-451: A common front design and varying back designs depicting the theme 'Vibrant Nation, Endearing Home'. Each note reflects a value or aspiration that defines the theme: 'Caring Community, Active Citizenry', 'Opportunities for All', 'Safe and Secure', 'Strong Families' and '...regardless of race, language or religion...'. In 2017, to commemorate the 50th anniversary of its Currency Interchangeability Agreement between Brunei and Singapore , both

600-987: A common history with other dollars. Many of these currencies adopted the name after moving from a £sd -based to a decimalized monetary system. Examples include the Australian dollar , the New Zealand dollar , the Jamaican dollar , the Cayman Islands dollar , the Fiji dollar , the Namibian dollar , the Rhodesian dollar , the Zimbabwe dollar , and the Solomon Islands dollar . Singapore dollar The Singapore dollar ( sign : S$ ; code : SGD )

700-511: A door to every species of fraud and injustice." In the Grundrisse (1857-58), Karl Marx considered the modern economic ramifications of a historical switch to fiat money from the gold or silver-commodity. Marx writes: "Suppose that the Bank of France did not rest on a metallic base, and that other countries were willing to accept the French currency or its capital in any form, not only in

800-404: A floral theme. One-dollar banknotes were discontinued and gradually replaced with an aluminium-bronze coin. The 5-cent coin was also changed to aluminum-bronze while the 10, 20, and 50 cents remained copper-nickel. Limited numbers of commemorative bimetallic 5-dollar coins with scalloped edges were also periodically issued later during this series. This series is still in circulation. The 1 cent coin

900-584: A form of paper fiat currency known popularly as 'greenbacks'. Their issue was limited by Congress at slightly more than $ 340 million. During the 1870s, withdrawal of the notes from circulation was opposed by the United States Greenback Party . It was termed 'fiat money' in an 1878 party convention. Immediately after World War I , governments and banks generally still promised to convert notes and coins into their nominal commodity (redemption by specie , typically gold) on demand. However,

1000-538: A later time. Since the notes were denominated in the local unit of account, they were circulated from person to person in non-tax transactions. These types of notes were issued particularly in Pennsylvania , Virginia and Massachusetts . Such money was sold at a discount to silver. The government would then spend them, and they would expire at a fixed later date. Bills of credit have generated some controversy from their inception. Those who have wanted to emphasize

1100-419: A portrait of Yusof Ishak, Singapore's first president, as in the current Portrait series notes. The $ 50 note highlights Singapore's history, transformation and future. It shows the late Prime Minister of Singapore, Lee Kuan Yew, shouting "Merdeka!"—the rallying cry of Singapore's independence struggle. The note makes distinctive use of the colour gold, reflecting Singapore's Golden Jubilee. The five $ 10 notes have

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1200-416: A recession, and reduces the risk that a liquidity trap (a reluctance to lend money due to low rates of interest) prevents monetary policy from stabilizing the economy. However, money supply growth does not always cause nominal increases of price. Money supply growth may instead result in stable prices at a time in which they would otherwise be decreasing. Some economists maintain that with the conditions of

1300-671: A siege during the Conquest of Granada (1482–1492). In 1661, Johan Palmstruch issued the first regular paper money in the West, by royal charter from the Kingdom of Sweden, through a new institution, the Bank of Stockholm . While this private paper currency was largely a failure, the Swedish parliament eventually assumed control of the issue of paper money in the country. By 1745, its paper money

1400-585: A transitional arrangement. The purpose of such taxes was later served by property taxes . The repeated cycle of deflationary hard money, followed by inflationary paper money continued through much of the 18th and 19th centuries. Often nations would have dual currencies, with paper trading at some discount to money which represented specie . Examples are During the American Civil War , the Federal Government issued United States Notes ,

1500-682: A troy pound (373.24). There are two quotes in the plays of William Shakespeare referring to dollars as money. Coins known as "thistle dollars" were in use in Scotland during the 16th and 17th centuries, and use of the English word, and perhaps even the use of the coin, may have begun at the University of St Andrews . This might be supported by a reference to the sum of "ten thousand dollars" in Macbeth (act I, scene II) (an anachronism because

1600-464: A vertically embedded security thread, while the $ 1,000 and $ 10,000 notes have two. The Ship Series of currency notes is the third set of notes to be issued for circulation in Singapore. Issued in the years 1984 to 1999, it retains the number of denominations as was in the previous two series of notes, but switches the $ 20 note for the $ 2 one. A maritime theme to reflect Singapore's maritime heritage

1700-596: A well-known merchant and deemed genuine. Prior to 1873, the silver dollar circulated in many parts of the world, with a value in relation to the British gold sovereign of roughly $ 1 = 4s 2d (21p approx). As a result of the decision of the German Empire to stop minting silver thaler coins in 1871, in the wake of the Franco-Prussian War , the worldwide price of silver began to fall. This resulted in

1800-449: Is accepted widely as a means of payment. Accordingly, the value of fiat money is greater than the value of its metal or paper content. One justification for fiat money comes from a micro-founded model. In most economic models, agents are intrinsically happier when they have more money. In a model by Lagos and Wright, fiat money does not have an intrinsic worth but agents get more of the goods they want when they trade assuming fiat money

1900-403: Is money that has intrinsic value because it is backed by and can be converted into a precious metal or another commodity. Fiat money can look similar to representative money (such as paper bills), but the former has no backing, while the latter represents a claim on a commodity (which can be redeemed to a greater or lesser extent). Government-issued fiat money banknotes were used first during

2000-641: Is much larger than the Currency Fund. As at 31 March 2017, MAS's assets (S$ 395 billion) were more than seven times larger than the assets of the Currency Fund (S$ 55 billion). The proposed amendment will merge the Currency Fund with the other funds of MAS and streamline MAS's operations. The Government has said that its support for the currency in circulation, as set out in the Currency Act, remains unchanged. Singapore's foreign reserves officially stood at over US$ 288.2 billion, as of July 2022 according to

2100-541: Is the Chinese yuan , for which the statistics are listed as "not available". The adoption of fiat currency by many countries, from the 18th century onwards, made much larger variations in the supply of money possible. Since then, huge increases in the supply of paper money have occurred in a number of countries, producing hyperinflations – episodes of extreme inflation rates much greater than those observed during earlier periods of commodity money . The hyperinflation in

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2200-456: Is the official currency of the Republic of Singapore . It is divided into 100 cents ( Malay : sen , Chinese : 分 ; pinyin : fēn , Tamil : காசு , romanized:  kācu ). It is normally abbreviated with the dollar sign $ , or S$ to distinguish it from other dollar-denominated currencies. The Monetary Authority of Singapore (MAS) issues the banknotes and coins of

2300-465: Is typically designated by the issuing government to be legal tender , and is authorized by government regulation. Since the end of the Bretton Woods system in 1971, the major currencies in the world are fiat money. Fiat money generally does not have intrinsic value and does not have use value . It has value only because the individuals who use it as a unit of account – or, in

2400-471: Is valuable. Fiat money's value is created internally by the community and, at equilibrium, makes otherwise infeasible trades possible. Objections to fiat money can be traced back to at least the 1700s. In 1787 George Washington wrote to Jabez Bowen , regarding the Rhode Island pound : "Paper money has had the effect in your State that it ever will have, to ruin commerce—oppress the honest, and open

2500-452: Is very close to the geometric mean of one troy pound and one pennyweight . In what follows, "dollar" will be used as a unit of mass. A troy pound being 5760 grains and a pennyweight being 240 times smaller, or 24 grains, the geometric mean is, to the nearest hundredth, 371.81 grains. This means that the ratio of a pound to a dollar (15.52) roughly equals the ratio of a dollar to a pennyweight (15.47). These ratios are also very close to

2600-805: The Brunei dollar is also customarily accepted in Singapore. The Spanish-American silver dollar brought over by the Manila galleons was in wide circulation in Asia and the Americas from the 16th to 19th centuries. From 1845 to 1945 the Straits Settlements (of which Singapore used to be part) issued its local equivalent, the Straits dollar . This was replaced by the Malayan dollar , and, from 1953,

2700-616: The International Monetary Fund (IMF). The Bretton Woods system was ended by what became known as the Nixon shock , a series of economic changes by United States President Richard Nixon in 1971. These changes included unilaterally canceling the direct convertibility of the United States dollar to gold . Since then, a system of national fiat monies has been used globally, with variable exchange rates between

2800-588: The Knights Templar would issue notes to pilgrims. Pilgrims would deposit valuables with a local Templar preceptory before embarking for the Holy Land and receive a document indicating the value of their deposit. They would then use that document upon arrival in the Holy Land to receive funds from the treasury of equal value. Washington Irving records an emergency use of paper money by the Spanish for

2900-617: The Malaya and British Borneo dollar , which were issued by the Board of Commissioners of Currency, Malaya and British Borneo . Singapore continued to use the common currency upon joining Malaysia in 1963 and after Singapore's independence from Malaysia in 1965, but the formal monetary union between Malaysia, Singapore and Brunei stopped in 1967, and Singapore established the Board of Commissioners of Currency, Singapore (BCCS), on 7 April 1967 and issued its first coins and notes. Nevertheless,

3000-595: The Monetary Authority of Brunei Darussalam and the Monetary Authority of Singapore issued $ 50 polymer banknotes to commemorate that event. On 5 June 2019, a $ 20 note commemorating the Singapore Bicentennial was issued. Fiat money Fiat money is a type of government issued currency that is not backed by a precious metal, such as gold or silver , nor by any other tangible asset or commodity . Fiat currency

3100-624: The Monetary Authority of Singapore (MAS) against a concealed basket of currencies of Singapore's major trading partners and competitors. This, in theory, allows the Singaporean government to have more control over imported inflation and to ensure that Singapore's exports remain competitive. On 1 October 2002, the Board of Commissioners of Currency, Singapore (BCCS) merged with the Monetary Authority of Singapore (MAS), which took over

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3200-844: The Seven Years' War resulted in rapid inflation in New France. After the British conquest in 1760, the paper money became almost worthless, but business did not end because gold and silver that had been hoarded came back into circulation. By the Treaty of Paris (1763) , the French government agreed to convert the outstanding card money into debentures , but with the French government essentially bankrupt , these bonds were defaulted and by 1771 they were worthless. The Royal Canadian Mint still issues Playing Card Money in commemoration of its history, but now in 92.5% silver form with gold plate on

3300-557: The hyperinflation in the Weimar Republic . From 1944 to 1971, the Bretton Woods agreement fixed the value of 35 United States dollars to one troy ounce of gold. Other currencies were calibrated with the U.S. dollar at fixed rates: for example the pound sterling traded for many years within a narrow band centred on US$ 2.80. The U.S. promised to redeem dollars with gold transferred to other national banks. Trade imbalances were corrected by gold reserve exchanges or by loans from

3400-733: The s gradually came to be written over the p developing a close equivalent to the "$ " mark, and this new symbol was retained to refer to the American dollar as well, once this currency was adopted in 1785 by the United States. By the time of the American Revolution , the Spanish dólar gained significance because they backed paper money authorized by the individual colonies and the Continental Congress . Because Britain deliberately withheld hard currency from

3500-468: The $ 25 note was replaced by the $ 20 note. Each note features a bird on the left side of the note's front, a theme selected to represent a young Singapore "ever ready to take flight to greater heights". Standard on each note, is the Coat of Arms , a lion head watermark, and the signature of the Minister for Finance and chairman of the BCCS, on the front of the note. As an added security feature, all notes have

3600-406: The 10th century CE. Although the notes were valued at a certain exchange rate for gold, silver, or silk, conversion was never allowed in practice. The notes were initially to be redeemed after three years' service, to be replaced by new notes for a 3% service charge, but, as more of them were printed without notes being retired, inflation became evident. The government made several attempts to maintain

3700-523: The 13th century in China . Fiat money started to predominate during the 20th century. Since President Richard Nixon 's decision to suspend US dollar convertibility to gold in 1971, a system of national fiat currencies has been used globally. Fiat money can be: The term fiat derives from the Latin word fiat , meaning "let it be done" used in the sense of an order, decree or resolution. Most of

3800-928: The 16th century: the Burgundian Cross Thaler ( Bourgondrische Kruisdaalder ), the German-inspired Rijksdaalder , and the Dutch lion dollar ( leeuwendaalder ). The latter coin was used for Dutch trade in the Middle East, in the Dutch East Indies and West Indies, and in the Thirteen Colonies of North America. For the English North American colonists, however, the Spanish peso or "piece of eight" has always held first place, and this coin

3900-476: The 19th and early 20th centuries led several countries, notably the United Kingdom, United States and Japan , to mint trade dollars , which were often of slightly different weights from comparable domestic coinage. Silver dollars reaching China (whether Spanish, trade, or other) were often stamped with Chinese characters known as " chop marks ", which indicated that that particular coin had been assayed by

4000-609: The American colonies, virtually all the non-token coinage in circulation was Spanish (and to a much lesser extent French and Dutch) silver, obtained via illegal but widespread commerce with the West Indies. Common in the Thirteen Colonies, Spanish dólar were even legal tender in one colony, Virginia . On 2 April 1792, U.S. Secretary of the Treasury Alexander Hamilton reported to Congress

4100-563: The Authority, with the approval of the President of Singapore , considers suitable for inclusion. In 2017, the government, in the second reading of the Monetary Authority of Singapore (Amendment) Bill 2017, announced that the Currency Fund will be merged with other funds of the MAS, because the currency in circulation is effectively backed by the full financial strength and assets of MAS, which

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4200-530: The German word Thal ( Tal in modern spelling), which means 'valley' ( cf. the English term dale ). This name found its way into other languages, for example: In contrast to other languages which adopted the second part of word joachimsthaler , the first part found its way into Russian language and became efimok  [ ru ] , yefimok (ефимок). The predecessor of the Joachimsthaler

4300-467: The Great Kaan's dominions he shall find these pieces of paper current, and shall be able to transact all sales and purchases of goods by means of them just as well as if they were coins of pure gold. According to a travelogue of a visit to Prague in 960 by Ibrahim ibn Yaqub , small pieces of cloth were used as a means of trade, with these cloths having a set exchange rate versus silver. Around 1150,

4400-464: The MAS. In 1967, the first series of coins was introduced in denominations of 1, 5, 10, 20 and 50 cents and 1 dollar. These coins depicted wildlife and other images relating to the island nation and were designed by Stuart Devlin , the same artist credited for the 1966 designs on Australia's decimal coin series. The sizes were the same as those used for the Malaysian ringgit and based directly on

4500-482: The Minister for Finance and chairman of the BCCS, on the front of the note. As an added security feature, all notes have at least one vertically embedded security thread, while the $ 10,000 note has two. The Bird Series of currency notes is the second set of notes to be issued for circulation in Singapore. Issued in the years 1976 to 1984, it has nine denominations, the same number as in the Orchid Series , albeit

4600-416: The Monetary Authority of Singapore launched a set of six commemorative notes. These commemorative notes comprise five S$ 10 polymer notes and a S$ 50 note. The note design's draw inspiration from significant milestones and achievements in Singapore's history, the multiracialism that defines the nation and the values and aspirations that underpin Singapore's progress. The front of both the $ 50 and $ 10 notes feature

4700-546: The Nash Equilibria. China has a long history with paper money , beginning in the 7th century CE . During the 11th century, the government established a monopoly on its issuance, and about the end of the 12th century, convertibility was suspended. The use of such money became widespread during the subsequent Yuan and Ming dynasties. The Song dynasty in China was the first to issue paper money, jiaozi , about

4800-520: The Singapore dollar was exchangeable at par with the Malaysian ringgit until 8 May 1973 under the Interchangeability Agreement, and interchangeability with the Brunei dollar is still maintained. Initially, the Singapore dollar was pegged to the pound sterling at a rate of two shillings and four pence to the dollar, or £1 = S$ 60/7 or S$ 8.57; in turn, £1 = US$ 2.80 from 1949 to 1967 so that US$ 1 = S$ 3.06. This peg to sterling

4900-604: The Singapore dollar. As of 2022, the Singapore dollar is the 10th most-traded currency in the world by value. Apart from its use in Singapore, the Singapore dollar is also accepted as customary tender in Brunei according to the Currency Interchangeability Agreement between the Monetary Authority of Singapore and the Autoriti Monetari Brunei Darussalam (Monetary Authority of Brunei Darussalam). Likewise,

5000-638: The Treasury] shall sell silver under conditions the Secretary considers appropriate for at least $ 1.292929292 a fine troy ounce." Silver was mostly removed from U.S. coinage by 1965 and the dollar became a free-floating fiat money without a commodity backing defined in terms of real gold or silver. The US Mint continues to make silver $ 1-denomination coins, but these are not intended for general circulation. The quantity of silver chosen in 1792 to correspond to one dollar, namely, 371.25 grains of pure silver,

5100-591: The U.S. Coinage Act (1873) which put the United States onto a ' de facto ' gold standard. Canada and Newfoundland were already on the gold standard, and the result was that the value of the dollar in North America increased in relation to silver dollars being used elsewhere, particularly Latin America and the Far East . By 1900 , value of silver dollars had fallen to 50 percent of gold dollars. Following

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5200-418: The Weimar Republic of Germany is a notable example. Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply . Presently, most economists favor a small and steady rate of inflation. Small (as opposed to zero or negative ) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly to

5300-411: The Yuan dynasty were restricted in area and duration as in the Song dynasty. During the 13th century, Marco Polo described the fiat money of the Yuan dynasty in his book The Travels of Marco Polo : All these pieces of paper are issued with as much solemnity and authority as if they were of pure gold or silver... and indeed everybody takes them readily, for wheresoever a person may go throughout

5400-435: The abandonment of the gold standard by Canada in 1931, the Canadian dollar began to drift away from parity with the U.S. dollar. It returned to parity a few times, but since the end of the Bretton Woods system of fixed exchange rates that was agreed to in 1944, the Canadian dollar has been floating against the U.S. dollar. The silver dollars of Latin America and South East Asia began to diverge from each other as well during

5500-444: The case of currency, a medium of exchange  – agree on its value. They trust that it will be accepted by merchants and other people as a means of payment for liabilities. Fiat money is an alternative to commodity money , which is a currency that has intrinsic value because it contains, for example, a precious metal such as gold or silver which is embedded in the coin. Fiat also differs from representative money , which

5600-432: The colony expanded, coins from France came to be used widely, but there was usually a shortage of French coins. In 1685, the colonial authorities in New France found themselves seriously short of money. A military expedition against the Iroquois had gone badly and tax revenues were down, reducing government money reserves. Typically, when short of funds, the government would simply delay paying merchants for purchases, but it

5700-403: The costs of the war and the required repairs and economic growth based on subsequent government borrowing made governments suspend redemption by specie. Some governments were wary of avoiding sovereign default but did not realise the consequences of paying debts by consigning newly printed cash not associated with a metal standard to their creditors, which resulted in hyperinflation : for example

5800-485: The course of the 20th century. The Straits dollar adopted a gold exchange standard in 1906 after it had been forced to rise in value against other silver dollars in the region. Hence, by 1935, when China and Hong Kong came off the silver standard , the Straits dollar was worth 2s 4d (11.5p approx) sterling , whereas the Hong Kong dollar was worth only 1s 3d sterling (6p approx). The term "dollar" has also been adopted by other countries for currencies which do not share

5900-477: The dangers of inflation have emphasized those colonies where the bills of credit depreciated most dramatically: New England and the Carolinas. Those who wanted to defend the use of bills of credit in the colonies have emphasized the middle colonies, where inflation was practically nonexistent. Colonial powers intentionally introduced fiat currencies backed by taxes (e.g., hut taxes or poll taxes ) to mobilise economic resources in their new possessions, at least as

6000-460: The direct consequence of ‘increase in the price of products, raw materials and labour’ (inflation) alongside a ‘decrease in price of bank drafts’ (ever-falling rates of interest)." Harvey notes the accuracy of the modern economy in this way, save for "...the rising prices of labor and means of production (low inflation except for assets such as stocks and shares, land and property and resources such as water rights)." The latter point can be explained by

6100-400: The dollar coin, such that a half-dollar was to contain half as much silver as a dollar, quarter-dollars would contain one-fourth as much, and so on. In an act passed in January 1837, the dollar's weight was reduced to 412.5 grains and alloy at 90% silver, resulting in the same fine silver content of 371.25 grains. On 21 February 1853, the quantity of silver in the lesser coins was reduced, with

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6200-533: The edge. It therefore has an intrinsic value which considerably exceeds its fiat value. The Bank of Canada and Canadian economists often use this early form of paper currency to illustrate the true nature of money for Canadians. An early form of fiat currency in the American Colonies was " bills of credit ". Provincial governments produced notes which were fiat currency, with the promise to allow holders to pay taxes with those notes. The notes were issued to pay current obligations and could be used for taxes levied at

6300-441: The effect that their denominations no longer represented their silver content relative to dollar coins. Various acts have subsequently been passed affecting the amount and type of metal in U.S. coins, so that today there is no legal definition of the term "dollar" to be found in U.S. statute. Currently the closest thing to a definition is found in United States Code Title 31, Section 5116, paragraph b, subsection 2: "The Secretary [of

6400-404: The formation of MAS on 1 January 1971. The MAS Act gave the MAS the authority to regulate all elements of monetary, banking, and financial aspects of Singapore. From 1985 onwards, Singapore adopted a more market-oriented exchange regime, classified as a Monitoring Band, in which the Singapore dollar is allowed to float (within an undisclosed bandwidth of a central parity) but closely monitored by

6500-518: The former is limited, the latter can be increased only within very positive limits, and in certain amounts of time. The printing press, on the other hand, is inexhaustible and works like a stroke of magic." Commenting on the passage, Marxist economist and geographer David Harvey writes that "[t]he consequence, as Marx saw it, would be that "the directly exchangeable wealth of the nation" would be ‘absolutely diminished’ alongside of ‘an unlimited increase of bank drafts’ (i.e., accelerating indebtedness) with

6600-403: The gold to silver ratio be exactly 15.5. Then a pennyweight of gold, that is 24 grains of gold, is nearly equal in value to a dollar of silver (1 dwt of gold = $ 1.002 of silver). Second, a dollar of gold is nearly equal in value to a pound of silver ($ 1 of gold = 5754 3/8 grains of silver = 0.999 Lb of silver). Third, the number of grains in a dollar (371.25) roughly equals the number of grams in

6700-423: The higher denomination notes (beyond $ 100) will continue to remain legal tender. Commemorative banknotes are also released, usually in limited quantities. The first commemorative banknote was released on 24 July 1990 to celebrate the 25th anniversary of Singapore's independence . Of the 5.1 million $ 50 polymer banknotes issued, 300,000 came with an overprint of the anniversary date "9 August 1990". This $ 50 note

6800-481: The issuing government or central bank either lose the ability to, or refuse to, continue to guarantee its value. The usual consequence is hyperinflation. Some examples of this are the Zimbabwean dollar , China's money during 1945 and the Weimar Republic's mark during 1923 . A more recent example is the currency instability in Venezuela that began in 2016 during the country's ongoing socioeconomic and political crisis . This need not necessarily occur, especially if

6900-431: The major currencies. During the 1960s, production of silver coins for circulation ceased when the face value of the coin was less than the cost of the precious metal it contained (whereas it had been greater historically ). In the United States, the Coinage Act of 1965 eliminated silver from circulating dimes and quarter dollars, and most other countries did the same with their coins. The Canadian penny , which

7000-421: The money in the economy is created, not by printing presses at the central bank, but by banks when they provide loans. [...] This also means as you pay off the loan, the electronic money your bank created is 'deleted' – it no longer exists. So essentially, banks create money, not wealth. Bank of England In monetary economics , fiat money is an intrinsically valueless object or record that

7100-416: The national bank, or sometimes, the government's treasury . The Bank for International Settlements published a detailed review of payment system developments in the Group of Ten ( G10 ) countries in 1985, in the first of a series that has become known as "red books". Currently the red books cover the participating countries on Committee on Payments and Market Infrastructures (CPMI). A red book summary of

7200-425: The obverse, and the reverse depicts a feature of civic virtue. There are both paper and polymer notes in circulation. The designs of the polymer notes are very similar to the corresponding paper note except for the slightly slippery feel and a small transparent window design in the corner of the banknote. Polymer notes are progressively replacing the paper banknotes in circulation. The notes also have Braille patterns at

7300-494: The old coinage of the former Malaya and British Borneo dollar . The 1-cent coin was bronze while the other denominations were copper-nickel. Later, in 1976, the 1-cent coin was changed to copper-clad steel. The production of the first series was phased out by 1985. In 1985, the second series of coins were introduced in denominations of 1, 5, 10, 20 and 50 cents and 1 dollar. The reverse of these coins were designed by Christopher Ironside. The new series offered smaller coins depicting

7400-619: The one-dollar, now a bi-metallic coin featuring the Merlion , the fifty cents coin featuring the Port of Singapore , the twenty-cent coin depicts Changi International Airport , the ten-cent coin featuring public housing and the five-cent coin featuring the Esplanade . The second and third series of Singaporean coins have medallic orientation . The Orchid Series of currency notes is the earliest to be in for circulation in Singapore. Issued in

7500-536: The original of which was known as a Spanish dollar. Large numbers of these eight-real coins were captured during the Napoleonic Wars , hence their re-use by the Bank of England . They remained in use until 1811. During World War II , when the U.S. dollar was (approximately) valued at five shillings, the half crown (2s 6d) acquired the nickname "half dollar" or "half a dollar" in the UK. Chinese demand for silver in

7600-583: The precise amount of silver found in Spanish dollar coins in common use in the states. As a result, the United States dollar was defined as a unit of pure silver weighing 371 4/16th grains (24.057 grams), or 416 grains of standard silver (standard silver being defined as 371.25/416 in silver, and balance in alloy). It was specified that the "money of account" of the United States should be expressed in those same "dollars" or parts thereof. Additionally, all lesser-denomination coins were defined as percentages of

7700-503: The private exportation of debt , labour , and figurative and/or literal waste to the global periphery , a concept related to metabolic and carbon rift . Another mathematical model that explains the value of fiat money comes from game theory . In a game where agents produce and trade objects, there can be multiple Nash equilibria where agents settle on stable behavior. In a model by Kiyotaki and Wright, an object with no intrinsic worth can have value during trade in one (or more) of

7800-430: The ratio of a gram to a grain: 15.43. Finally, in the United States, the ratio of the value of gold to the value of silver in the period from 1792 to 1873 averaged to about 15.5, being 15 from 1792 to 1834 and around 16 from 1834 to 1873. This is also nearly the value of the gold to silver ratio determined by Isaac Newton in 1717. That these three ratios are all approximately equal has some interesting consequences. Let

7900-581: The real Macbeth , upon whom the play was based, lived in the 11th century). In the Sherlock Holmes story " The Man with the Twisted Lip " by Sir Arthur Conan Doyle , published in 1891, an Englishman posing as a London beggar describes the shillings and pounds he collected as dollars. In 1804, a British five- shilling piece, or crown , was sometimes called "dollar". It was an overstruck Spanish eight real coin (the famous " piece of eight "),

8000-683: The responsibility of banknote issuance. As of 2012, the total currency in circulation was S$ 57.278 billion. All issued Singapore currency in circulation (notes and coins) are fully backed by external assets in its Currency Fund to maintain public confidence. Such external assets consists of all or any of the following: (a) gold and silver in any form; (b) foreign exchange in the form of demand or time deposits; bank balances and money at call; Treasury Bills; notes or coins; (c) securities of or guaranteed by foreign governments or international financial institutions; (d) equities; (e) corporate bonds; (f) currency and financial futures; (g) any other asset which

8100-702: The risk of money laundering, with all banks instructed to exchange the notes with MAS and not recirculate them. This is a trend in many countries like European Central Bank 's discontinuation of the 500- euro banknote in 2016 and AMBD's announcement to stop the production and issuance of the B$ 10,000 (the largest banknote) in 2020 amid the COVID-19 pandemic . MAS would also stop producing the S$ 1,000 banknote as well from 1 January 2021 onwards, but banks would be allowed to recirculate existing notes with customers. The MAS said that

8200-613: The serial number is replaced with a Millennium 2000 logo. These millennium notes are printed on paper as polymer notes were not introduced yet then. On 27 June 2007, to commemorate 40 years of currency agreement with Brunei, a commemorative S$ 20 note was launched; the back is identical to the Bruneian $ 20 note launched simultaneously. A circulation version of the $ 20 note can be exchanged at banks in Singapore beginning 16 July 2007, limited to two pieces per transaction. On 18 August 2015, to commemorate Singapore's 50 years of nation-building,

8300-429: The soldiers as pay in lieu of gold and silver. Because of the chronic shortages of money of all types in the colonies, these cards were accepted readily by merchants and the public and circulated freely at face value . It was intended to be purely a temporary expedient, and it was not until years later that its role as a medium of exchange was recognized. The first issue of playing card money occurred during June 1685 and

8400-463: The specific form of the precious metals. Would the bank not have been equally forced to raise the terms of its discounting precisely at the moment when its "public" clamoured most eagerly for its services? The notes with which it discounts the bills of exchange of this public are at present nothing more than drafts on gold and silver. In our hypothetical case, they would be drafts on the nation's stock of products and on its directly employable labour force:

8500-418: The top right-hand corner of the front design. The S$ 10,000 and B$ 10,000 note are the world's most valuable banknotes (that are officially in circulation). As of August 2011, it is worth over seven times as much as the next most valuable, the 1,000- Swiss franc note. On 2 July 2014, the Monetary Authority of Singapore announced that it would stop printing $ 10,000 notes starting from 1 October 2014 to reduce

8600-463: The total supply of " broad money " (cash plus demand deposits ). In modern economies, relatively little of the supply of broad money is physical currency. For example, in December 2010 in the U.S., of the $ 8,853.4 billion of broad money supply (M2), only $ 915.7 billion (about 10%) consisted of physical coins and paper money. The manufacturing of new physical money is usually the responsibility of

8700-585: The value of banknotes and coins in circulation is shown in the table below where the local currency is converted to US dollars using the end of the year rates. The value of this physical currency as a percentage of GDP ranges from a maximum of 19.4% in Japan to a minimum of 1.7% in Sweden with the overall average for all countries in the table being 8.9% (7.9% for the US). The most notable currency not included in this table

8800-459: The value of the paper money by demanding taxes partly in currency and making other laws, but the damage had been done, and the notes became disfavored. The succeeding Yuan dynasty was the first dynasty of China to use paper currency as the predominant circulating medium. The founder of the Yuan dynasty, Kublai Khan , issued paper money known as Jiaochao during his reign. The original notes during

8900-516: The various monetary functions associated with a central bank were performed by several government departments and agencies. As Singapore progressed, the demands of an increasingly complex banking and monetary environment necessitated streamlining the functions to facilitate the development of a more dynamic and coherent policy on monetary matters. Therefore, the Parliament of Singapore passed the Monetary Authority of Singapore Act in 1970, leading to

9000-400: The years 1967 to 1976, it has nine denominations: $ 1, $ 5, $ 10, $ 25, $ 50, $ 100, $ 500, $ 1,000, and $ 10,000. Each note has an orchid design in the centre of the note's front, the orchid being the national flower of Singapore. A scene of Singapore is depicted on the back, which varies across denominations. Standard on each note, is the Coat of Arms , a lion head watermark, and the signature of

9100-405: Was adopted, and progressively shows across the various denominations, the different kinds of ships which have plied Singapore's waters as the country developed. These vignettes are located on the front of the note. On the back, various scenes depicting Singapore's achievements are shown, as well as an orchid , to symbolise the country's national flower. Standard on each note, is the Coat of Arms ,

9200-714: Was also called the "dollar" as early as 1581. Spanish dollars or " pieces of eight " were distributed widely in the Spanish colonies in the New World and in the Philippines . The sign is first attested in business correspondence in the 1770s as a scribal abbreviation "p", referring to the Spanish American peso , that is, the "Spanish dollar" as it was known in British North America. These late 18th- and early 19th-century manuscripts show that

9300-503: Was broken in 1967 when the pound was devalued to US$ 2.40 but the peg to the U.S. dollar of US$ 1 = S$ 3.06 was retained. This peg remained for a short time after the Nixon Shock of the early 1970s. As Singapore's economy grew and its trade links diversified to many other countries and regions, Singapore moved towards pegging its currency against a fixed and undisclosed trade-weighted basket of currencies from 1973 to 1985. Before 1970,

9400-414: Was inconvertible to specie , but acceptance was mandated by the government. This fiat currency depreciated so rapidly that by 1776 it was returned to a silver standard. Fiat money also has other beginnings in 17th-century Europe, having been introduced by the Bank of Amsterdam in 1683. In 17th century New France , now part of Canada, the universally accepted medium of exchange was the beaver pelt. As

9500-673: Was mostly copper until 1996, was removed from circulation altogether during the autumn of 2012 due to the cost of production relative to face value. In 2007, the Royal Canadian Mint produced a million dollar gold bullion coin and sold five of them. In 2015, the gold in the coins was worth more than 3.5 times the face value. A central bank introduces new money into an economy by purchasing financial assets or lending money to financial institutions. Commercial banks then redeploy or repurpose this base money by credit creation through fractional reserve banking , which expands

9600-456: Was not safe to delay payment to soldiers due to the risk of mutiny . Jacques de Meulles , the Intendant of Finance, conceived an ingenious ad hoc solution – the temporary issuance of paper money to pay the soldiers, in the form of playing cards . He confiscated all the playing cards in the colony, had them cut into pieces, wrote denominations on the pieces, signed them, and issued them to

9700-512: Was redeemed three months later. However, the shortages of coinage reoccurred and more issues of card money were made during subsequent years. Because of their wide acceptance as money and the general shortage of money in the colony, many of the playing cards were not redeemed but continued to circulate, acting as a useful substitute for scarce gold and silver coins from France. Eventually, the Governor of New France acknowledged their useful role as

9800-539: Was taken out of circulation in 2002. On 21 February 2013, the Monetary Authority of Singapore announced a new series of coins in denominations of 5, 10, 20, 50 cents and 1 dollar, which went into circulation on 25 June 2013, featuring Singapore's national icons and landmarks. The coins are struck on a multi-ply plated-steel planchet used by the Royal Canadian Mint and comes with enhanced features to differentiate from fakes. The coins also feature new designs,

9900-700: Was the Guldengroschen or Guldiner which was a large silver coin originally minted in Tirol in 1486, but which was introduced into the Duchy of Saxony in 1500. The King of Bohemia wanted a similar silver coin which then became the Joachimsthaler. The Joachimsthaler of the 16th century was succeeded by the longer-lived Reichsthaler of the Holy Roman Empire , used from the 16th to 19th centuries. The Netherlands also introduced its own dollars in

10000-408: Was the first commemorative note issued by the BCCS and was also the first polymer banknote in the history of Singapore's currency. In addition, the $ 50 note was the first note designed in Singapore by a Singapore artist. On 8 December 1999, to celebrate the coming 2000 millennium, three million $ 2 millennium notes were circulated. The note is similar to the $ 2 portrait series, except that the prefix of

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