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:
- Soviet Union
- Myanmar (until March 2013)
- East Germany (forum checks, pegged to the West German Deutsche Mark)
- Ghana - it was illegal to import and export Ghanaian cedi banknotes (around 1980)
- North Korea
- Cuba (Today's convertible peso, to an extent, is a form of FEC)
- Czechoslovakia (Tuzex)
- Bulgaria (Corecom)
... forces stormed the consulates of America, Britain, and Japan, looting nearly every foreign property and almost assassinating the Japanese consul ... Standard Scrip in August 1948, outlawing private ownership of gold, silver, and foreign exchange, collecting all such precious metals and foreign exchange from the people and ...
Famous quotes containing the words certificate, foreign and/or exchange:
“God gave the righteous man a certificate entitling him to food and raiment, but the unrighteous man found a facsimile of the same in Gods coffers, and appropriated it, and obtained food and raiment like the former. It is one of the most extensive systems of counterfeiting that the world has seen.”
—Henry David Thoreau (18171862)
“I journeyed to London, to the timekept City,
Where the River flows, with foreign flotations.
There I was told: we have too many churches,
And too few chop-houses.”
—T.S. (Thomas Stearns)
“The social kiss is an exchange of insincerity between two combatants on the field of social advancement. It places hygiene before affection and condescension before all else.”
—Sunday Correspondent (London, Aug. 12, 1990)