Why did the strange phenomenon of 'there are two types of banknotes with the same unit but different value in one country'?
Various currencies are distributed around the world, such as yen, US dollar, euro, renminbi, and won, depending on the country or economic community, but it is natural that one country uses only one type of currency. It is being done. However, in
Moneyness: One country, two monetary systems
http://jpkoning.blogspot.com/2020/05/one-country-two-monetary-systems.html
One of the poorest countries in the world, Yemen uses the Yemeni Real Bank issued by the Central Bank of Yemen as its currency. Normally, `` all 10 Yemeni real banknotes have the same value '', but from December 2019 `` Yemen real banknotes issued before 2016 '' and `` issued after 2017 '' There is a difference in the real value of 'Yemen Real Banknotes'.
Due to this situation, it seems that in Yemen, the value of Yemeni real banknotes issued before 2016 is about 10% higher than the value of Yemeni real banknotes issued after 2017. If we compare this with Japanese currency, even with the same 1000-yen bill, it can be said that the 'old banknote with Natsume Soseki' design is 10% more valuable than the 'new banknote with Hideyo Noguchi's design.'
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The origin of this strange phenomenon was the Yemen Civil War that occurred in 2015. In Yemen, the Hussi group , led by Muhammad Ali Al-Husi , is gaining power, occupying Sanaa , the capital city in 2014, and in 2015, Interim President Abd Rabo Mansour Hardy resigned. After that, Interim President Hardy escaped to the south and withdrew his resignation, plunging into a civil war involving the Houthis, Hardy's president, and the militia of Al Qaeda on the Arabian Peninsula .
The map below shows the powers that effectively control each region by the civil war in Yemen. The dark-colored coast is dominated by the Houthis in the yellow-colored northwest, including Sanaa, the capital of Yemen, and the light-colored southeast in the southeast, governed by the internationally recognized Hardy government. The power of Al Qaeda has penetrated into some areas of the department. The Hardy Presidential Party, which has lost the former capital, says that the port city of Aden has been designated as the provisional capital, and basically the civil war continues as a confrontation between the Houthis and Hardy Presidentialities.
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The Yemen Central Bank, located in Sanaa, chose not to be either a Houthis or Hardy president at the beginning of the civil war, but rather to remain an intermediate power. Therefore, the central bank, which was in the position of paying government salaries to the Yemeni army, paid salaries at the same time to soldiers of the former government army who supported the Houthis, as well as soldiers of the government army attached to the Hardy presidential army at the beginning of the civil war. I was there.
In 2016, the Hardy presidential transitional government forced the central bank to move to Aden, resulting in the central bank in Sanaa not being able to print new notes. By the second half of 2016, the central bank had been split in two, the central bank in Sanaa being managed by the Houthis faction, and the central bank in Aden being managed by the transitional government.
The central bank, which is managed by the Transitional Government, then ordered Goznak , a Russian banknote manufacturer, to print new Yemeni Real banknotes. The Yemeni real banknotes that arrived in Aden in 2017 differed from the real banknotes before 2016 in terms of hue, number notation, letter position, etc., so if you look closely it was possible to distinguish from old banknotes. That. The following photo is the old Yemeni real banknote ...
by ValeewIldar
This is the New Yemen Real Banknote. The difference is that the old Yemeni real banknotes are the Arabic and Indian figures used with Arabic in the upper right, while the new Yemeni real banknotes are the Arabic figures commonly used in Western countries.
by BanknoteNews
The Houthis disliked the circulation of new Yemeni Real banknotes in the areas they controlled and began restricting the circulation of new banknotes in 2017. And on December 18, 2019, the Houthis faction completely banned the use of the new Yemeni real banknotes and replaced the new Yemeni real banknotes with the old Yemeni real banknotes throughout the region. The Houthis group handed over 100,000 Yemeni Rial (about 170 dollars / about 18,000 yen) old banknotes to the residents who brought the new banknotes they had, and more than that It was reported as the balance of the bank.
The ban on new Yemeni real banknotes in the Hussi territory northeast of Yemen has begun to make a difference in the value of old and new Yemeni banknotes. The following image is a graph of the real domestic exchange rate in Yemen against the real Yemen exchange rate based on a World Bank survey. From around December 2019, the value of blue old Yemeni real banknotes and orange new Yemeni real banknotes has opened up, while old Yemeni real banknotes are worth about 600 Yemeni real dollars, while new Yemen real banknotes are about 660 Yemen real per dollar.
by World Bank
One of the reasons for the difference in value between old Yemeni real banknotes and new Yemeni real banknotes is that while the number of old Yemeni real banknotes issued before 2016 does not increase any more, new Yemeni real banknotes Is that the distribution volume may increase in the future. Applying to Gresham's law , the rarer old Yemeni real banknotes become 'good coins' and the new Yemeni real banknotes become 'bad coins', and the old Yemeni real banknotes of high real value are kept at hand and the new low value Yemeni Real Banknotes are used for daily payments.
Since the central bank in Sanaa banned the handling of new Yemeni real banknotes, the central bank of Aden may stop handling old Yemeni real banknotes in the future. This would leave the old Yemeni real banknotes in an “isolated” state, but Koning does not expect the old Yemeni real banknotes to stop flowing.
For example, the Somali Shilling, which was once published in Somalia , was suspended in 1991. However, because the inflation rate was suppressed by the fact that new issuance was stopped and it became stronger than the currencies of neighboring countries, it is still circulating even after 20 years have passed since the issuance was suspended. .. The same can happen in Yemeni Real.
Yemen faces many challenges such as civil war, but confusion in the currency will put an additional burden on the people's lives, Koning points out. It is taken for granted that currencies are standardized in most countries, but unifying currencies requires a lot of investment in technology and coordination. 'The same currency value in Los Angeles and New York, Vancouver and Halifax is worth blessing,' Koning said.
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