The A and B of currencies
Written by Zahid Aziz
This article appeared in Forum page of The Edge Malaysia, Issue 867, July 18-24, 2011
We have just completed a job and about to be paid for it. We are given an option to be paid A or B. A’s value is stable - there seems to be a basic value which is unchanged.
B has no basic value. If you hold B its value can be taken away by various external forces. It can be changed by the governments; it can be changed by governments creating more and more of it; it can be changed by people losing confidence in it; it can also be changed by outsiders holding large quantities of it and cornering the market for it.