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For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.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:
“Upset at the young wife’s
first loss of virtue
in a riverside thicket,
a flock of birds
flies up,
mourning the loss
with their wings.”
—Hla Stavhana (c. 50 A.D.)
“The universal social pressure upon women to be all alike, and do all the same things, and to be content with identical restrictions, has resulted not only in terrible suffering in the lives of exceptional women, but also in the loss of unmeasured feminine values in special gifts. The Drama of the Woman of Genius has too often been a tragedy of misshapen and perverted power.”
—Anna Garlin Spencer (1851–1931)
“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)