yota691 Posted June 24, 2012 Report Share Posted June 24, 2012 (edited) My money is bigger than yours The psychology of exchange rates Jun 23rd 2012 | HONG KONG | SINCE January 2007, one Hong Kong dollar has been worth less than one yuan. According to Joseph Yam, a former head of the Hong Kong Monetary Authority, that matters to Hong Kongers visiting mainland China. In a paper published this month, he described the “sense of despair” felt by some of his Hong Kong friends when their currency slipped below parity with the mainland’s. They worried about mainlanders “belittling the value of Hong Kong people’s money”. This is one reason, albeit the most trivial, why Hong Kong might want to reconsider its long-standing peg to the US dollar, Mr Yam argues. To most economists, Mr Yam included, it all sounds a bit daft. But people do seem to equate the size of a currency unit with its prestige. They think that “one currency is ‘bigger’ than another if one unit of it can be exchanged for more than one unit of the other,” Mr Yam writes. That way, foreign prices are divided not multiplied, diminished not enlarged, when converted into the home currency. The title of the world’s “biggest” currency belongs to the Kuwaiti dinar, which is now worth about $3.58. The mighty American dollar ranks joint 11th, alongside the dollars of Bermuda and the Bahamas and the balboa of Panama. The Hong Kong dollar, by contrast, ranks about 60 places farther down the list, belittled not only by the Chinese yuan but also by the Botswana pula and the Bolivian boliviano. But before you feel too sorry for them, spare a thought for the Vietnamese. With the demise of the Zimbabwe dollar, theirs is the smallest currency in the world. Wherever they go, they must multiply, not divide. http://www.economist.com/node/21557340 Edited June 24, 2012 by yota691 Link to comment Share on other sites More sharing options...
MovieMaker Posted June 24, 2012 Report Share Posted June 24, 2012 Interesting, thanks for sharing and the visual. Link to comment Share on other sites More sharing options...
Redwizard Posted June 24, 2012 Report Share Posted June 24, 2012 And I was told size doesnt matter .... Link to comment Share on other sites More sharing options...
respectron Posted June 24, 2012 Report Share Posted June 24, 2012 And I was told size doesnt matter .... me too!!! Link to comment Share on other sites More sharing options...
jeepguy Posted June 24, 2012 Report Share Posted June 24, 2012 the top three have caught my eye { eyes } if only iraq could get their goverment under control .... ahhhhhhh they might be back in the top three numbers also ,,, in the 2 and 3 range ,,, why not ?? Link to comment Share on other sites More sharing options...
Rayzur Posted June 24, 2012 Report Share Posted June 24, 2012 And I was told size doesnt matter .... so sorry my friend.... Someone steered ya wrong and gave you really bad information 2 Link to comment Share on other sites More sharing options...
umbertino Posted June 24, 2012 Report Share Posted June 24, 2012 And I was told size doesnt matter .... Let's be frank... It does in some circumstances. 1 Link to comment Share on other sites More sharing options...
Rayzur Posted June 24, 2012 Report Share Posted June 24, 2012 Let's be frank... It does in some circumstances. Rofl Rofl rofl ...... tooo funny 1 Link to comment Share on other sites More sharing options...
KamelKeeper Posted June 27, 2012 Report Share Posted June 27, 2012 (edited) Let's be frank... It does in some circumstances. Every man wants to be Frank, and I just want to meet him. Edited June 27, 2012 by KamelKeeper 1 Link to comment Share on other sites More sharing options...
jackster Posted June 27, 2012 Report Share Posted June 27, 2012 (edited) Every man wants to be Frank, and I just want to meet him. Shirley, you must be joking. Edited June 27, 2012 by jackster 1 Link to comment Share on other sites More sharing options...
DinarDana Posted June 27, 2012 Report Share Posted June 27, 2012 Shirley, you must be joking. Too bad you are Jack and not Frank. Link to comment Share on other sites More sharing options...
jackster Posted June 27, 2012 Report Share Posted June 27, 2012 Too bad you are Jack and not Frank. If you ever meet me on a plane, you should say something like "Hey there, Jack!", but never "Hi, Jack!" Link to comment Share on other sites More sharing options...
cris Posted June 27, 2012 Report Share Posted June 27, 2012 Shirley, you must be joking. Completely serious....and dont call me shirley http://www.youtube.com/watch?v=0A5t5_O8hdA&feature=player_detailpage 1 Link to comment Share on other sites More sharing options...
TRERUMPH Posted June 27, 2012 Report Share Posted June 27, 2012 My money is bigger than yours The psychology of exchange rates Jun 23rd 2012 | HONG KONG | SINCE January 2007, one Hong Kong dollar has been worth less than one yuan. According to Joseph Yam, a former head of the Hong Kong Monetary Authority, that matters to Hong Kongers visiting mainland China. In a paper published this month, he described the “sense of despair” felt by some of his Hong Kong friends when their currency slipped below parity with the mainland’s. They worried about mainlanders “belittling the value of Hong Kong people’s money”. This is one reason, albeit the most trivial, why Hong Kong might want to reconsider its long-standing peg to the US dollar, Mr Yam argues. To most economists, Mr Yam included, it all sounds a bit daft. But people do seem to equate the size of a currency unit with its prestige. They think that “one currency is ‘bigger’ than another if one unit of it can be exchanged for more than one unit of the other,” Mr Yam writes. That way, foreign prices are divided not multiplied, diminished not enlarged, when converted into the home currency. what about the Vietnamese currency?????? The title of the world’s “biggest” currency belongs to the Kuwaiti dinar, which is now worth about $3.58. The mighty American dollar ranks joint 11th, alongside the dollars of Bermuda and the Bahamas and the balboa of Panama. The Hong Kong dollar, by contrast, ranks about 60 places farther down the list, belittled not only by the Chinese yuan but also by the Botswana pula and the Bolivian boliviano. But before you feel too sorry for them, spare a thought for the Vietnamese. With the demise of the Zimbabwe dollar, theirs is the smallest currency in the world. Wherever they go, they must multiply, not divide. http://www.economist.com/node/21557340 1 1 Link to comment Share on other sites More sharing options...
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