History of the Pakistan rupee

[stonej]

http://pakistaniat.com/2008/11/13/it%E2%80%99s-current-its-currency-pakistani-rupee/

[Mike Marotta]

On Nov 15, 1:33 pm, stonej <sto...@mail.lib.msu.edu> wrote:
> http://pakistaniat.com/2008/11/13/it%E2%80%99s-current-its-currency-p...

Thanks, again, John. I found most interesting the amendment by the
commenter that the one-rupee is a fiscal policy instrument and the
others are monetary policy instruments. The 1 is signed by the
minister of the treasury and the others by the governor of the bank.

"The Rupee (and its issuance) is controlled by the Government of
Pakistan. The signature on one Rupee note is of the Secretary of
Finance. The backside displays “Government of Pakistan”. Parliament
through its acts control the amount of the Rupee. Hence the fiscal
policy.
"All dominations of 5 and above and their supply (circulation) are
controlled by State Bank of Pakistan. The signature on these notes is
that of Governor of State Bank and the back side displays “State Bank
of Pakistan”. Hence the monetary policy."

Generally speaking -- except in the USA now, where coins and notes
alike are legal tender -- banknotes are legal tender, but coins are
not. Coins used to have "intrinsic" value, of course, and when that
went away, there was nothing left. Paper -- having no intrinsic value
-- had to be declared "legal tender." So, a few years back, the Bank
of Canada refused to accept loonies from banks for payment for
twonies: loonies were not legal tender. On the other hand, before the
euro, the situation was reversed in Greece. There, the coins were the
issue of the state. However, the Bank of Greece -- like the Bank of
England -- was considered a private entity and its paper was not legal
tender.

Mike M.
Michael E. Marotta
.