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For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.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:
“Parents must not only have certain ways of guiding by prohibition and permission; they must also be able to represent to the child a deep, an almost somatic conviction that there is a meaning to what they are doing. Ultimately, children become neurotic not from frustrations, but from the lack or loss of societal meaning in these frustrations.”
—Erik H. Erikson (20th century)
“This loss of interest, hair, and enterprise ...”
—Philip Larkin (1922–1986)
“And no one, it seemed, had had the presence of mind
To initiate proceedings or stop the wheel
From the number it was backing away from as it stopped:
It was performing prettily; the puncture stayed unseen....”
—John Ashbery (b. 1927)