Loss of Backing
A fiat-money currency generally loses value once the issuing government or central bank refuses to further guarantee its value, but this need not necessarily occur. For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.
Read more about this topic: Fiat Money
Famous quotes containing the words loss of, loss and/or backing:
“Nothing that grieves us can be called little: by the eternal laws of proportion a child’s loss of a doll and a king’s loss of a crown are events of the same size.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“A gain is no joy, nor a loss any grief.”
—Chinese proverb.
“When I moved in with a bathing suit and tea bags
the ocean rumbled like a train backing up
and at each window secrets came in
like gas.”
—Anne Sexton (1928–1974)