Foreign exchange certificate
Encyclopedia
A foreign exchange certificate, sometimes abbreviated to FEC, is a type of currency
. Foreign exchange certificates are sometimes used by governments as a surrogate for a national currency, where the national currency is usually subject to exchange controls or is not convertible. Most examples of foreign exchange certificate have an exchange rate higher than the national currency, being either pegged to a hard currency, or their exchange rate determined by the central bank.
Some countries which have employed FECs in the past include:
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
. Foreign exchange certificates are sometimes used by governments as a surrogate for a national currency, where the national currency is usually subject to exchange controls or is not convertible. Most examples of foreign exchange certificate have an exchange rate higher than the national currency, being either pegged to a hard currency, or their exchange rate determined by the central bank.
Some countries which have employed FECs in the past include:
- Soviet UnionSoviet UnionThe Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
- ChinaChinaChinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
- Myanmar
- East Germany (forum cheques, peggedFixed exchange rateA fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.A fixed exchange rate is usually used to...
to the West GermanWest GermanyWest Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
Deutsche Mark) - GhanaGhanaGhana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
- it was illegal to import and export Ghanaian cediGhanaian cediThe Ghana Cedi is the unit of currency of Ghana. The word "cedi" is derived from the Akan word for cowry shell. The Ghana cedi was introduced on 3 July 2007 and is equal to 10,000 old cedis...
banknotes (around 1980) - North KoreaNorth KoreaThe Democratic People’s Republic of Korea , , is a country in East Asia, occupying the northern half of the Korean Peninsula. Its capital and largest city is Pyongyang. The Korean Demilitarized Zone serves as the buffer zone between North Korea and South Korea...
- CubaCubaThe Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
(Today's convertible pesoCuban convertible pesoThe convertible peso , is one of two official currencies in Cuba, the other being the peso. It has been in limited use since 1994, when it was treated as equivalent to the U.S. dollar: its value was officially US$1.00. On November 8, 2004, the U.S...
, to an extent, is a form of FEC) - CzechoslovakiaCzechoslovakiaCzechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...
(TuzexTuzexTuzex, during the period of communist rule in Czechoslovakia, was a network of shops in which it was possible to use hard currency or Tuzex vouchers to purchase foreign, mainly western luxury goods, unavailable at regular stores. The Czechoslovak koruna was not accepted. The name Tuzex is a...
) - BulgariaBulgariaBulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
(CorecomCorecomCorecom was a chain of hard-currency stores during the Communist rule in Bulgaria . Goods were often priced cheaper than in the West, however, they were still inaccessible for most Bulgarians because the national currency, the lev, was not accepted at the stores...
) - PolandPolandPoland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...