Cloud Strife
Established Member
- Joined
- 25 Feb 2014
- Messages
- 1,872
If you looks at virtually every other country that has achieved independence from its larger neighbour (eg from Cloud Strife’s Estonian example to most recently South Sudan) for good or for ill these countries have set up their own currencies within a matter of months or at most a handful of years.
There are some different examples, of course. Montenegro started to use the DM alongside the Yugoslav dinar in 1999 before dropping the dinar in late 2000. They then switched to the Euro quite painlessly, and despite the lack of an agreement with the ECB, Montenegro is still quite successfully using it with zero discussion about their own currency.
Going back, Ireland stuck with the Sterling area and later peg until 1979, even though the Irish government was relatively hostile towards the UK throughout most of the 20th century. Namibia also stuck with the South African rand for 3 years from 1990 to 1993. I think Australia and New Zealand also stuck with Sterling after they gained independence?
But yes, there are other examples, such as the Czechoslovak koruna, which collapsed within what, 5 weeks or so of the Velvet Divorce?
I think the unprecedented thing here is that there aren't many examples of wealthy countries declaring independence, so it's relatively uncharted waters.