Which countries don't have their own currency?

Some countries don't have their own national currency; instead they share a unified currency or use another country's currency altogether

Graham Morley

30 August 2017

More countries in the world than you might think do not have their own currency. There are also currency unions where countries share the same currency; the most obvious to us of course, would be the euro which is shared by 19 countries and around 350 million people.

Countries who don't have their own national currency

Demonetisation

Sometimes, countries will change or withdraw the currency they have in circulation.

For example, last month the Indian government announced it was scrapping the 500 and 1000 Indian rupee notes (equivalent to about £5 and £10) and replacing them completely different notes. Indian citizens were given just two weeks to exchange their existing banknotes before they became worthless!

In this case the reason was to try and end India's cash economy. In India, is still common for people to pay for, and get paid in cash; many people do not use or even have access to a bank account. As a result tax revenues are far below that of similar countries, so the aim of the Indian government was to make all the cash 'stashed under the beds' illegal tender.

The process of trying to change or regulate currencies in this way is called demonetisation. In terms of currency reforms, it's a practice that seldom works. In recent times Ghana, Nigeria, Myanmar, Zaire and even the old soviet Union have sought to regulate their currencies, but it can often lead to civil unrest and in extreme cases, citizens start using another currency altogether.

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