2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The concept of "currency" can be viewed in the modern world from two positions. The first is the unit by which the money of a state is measured. The second is a banknote.
Usually, when pronouncing this word, they mean exactly the banknote. For example, when they say "the Russian currency has strengthened." This means that the Russian ruble has become stronger compared to other currencies such as the US dollar.
History of occurrence
If we talk about where banknotes came from, it is worth mentioning that ordinary barter became the prerequisite. In simple terms, barter means the exchange of goods for goods. Before the advent of money, people simply exchanged wool, food and other material values.
As trade grew, the need grew for a commodity that could be exchanged for anything. In this regard, transactions for the exchange of goods for precious metals began to gain popularity. The trade was mainly silver and gold, a metal whose price has remained relatively stable.
Since there was no definite form, merchants began to fish for gold on their own andsilver in the form of ingots, which indicated the weight, as well as the sample of the metal. Due to the large number of frauds, such functions gradually began to be performed by public authorities.
Cash in Ancient China
Scientists believe that the first forms of paper currency were used in ancient China. In Europe, such a currency began to appear in the form of receipts for the acceptance or storage of goods and precious metals.
The first step towards the mass production of paper currency was taken by the French Minister of Finance John Law, who at the beginning of the 18th century decided to print bank notes that were not confirmed by gold resources to increase the country's we alth. His idea failed.
This happened due to the fact that the amount of paper money must be confirmed by the gold reserves and the amount of goods in the country.
Although this opinion today is twofold. Since the times of the First and Second World Wars, countries have decided to stick not to gold, but to the US dollar, which was supposed to be fully covered by gold reserves and ensure the cash flow of all foreign exchange transactions in the world.
But in 1964, when the number of dollar currency notes issued in the United States reached the number of the country's gold and foreign exchange reserves, such a currency backing system was defeated.
Today, not a single currency of the countries of the world is tied to the gold reserve. The level and rate in them is regulated solely by supply and demand in the currency markets.
The cheapest currency in the world
The world is so vast andIt is huge that there are a great many banknotes in it. Everyone knows US dollars, euros, rubles. But there are also currencies that are less common, and the demand for them is much less.
For example, the cheapest currency in the world is the Vietnamese dong. You won’t believe it, but if you compare it with the ruble, then one such monetary unit is cheaper in value than one Russian kopeck (the ratio to the ruble is about 0.0016 rubles for one dong).
Speaking about what is the cheapest currency in the world, one cannot fail to mention the Iranian real. Its ratio to the ruble is approximately equal to 0.003 rubles. for one real Such a low cost is caused by eternal conflicts and sanctions of Western states. However, the Iranian authorities are not upset, since the main means of payment is not real, but oil, the reserves of which this country will last for many more years.
Like the Iranian real, it can be said that the cheapest currency in the world is the domra. Chances are you haven't heard of her. This currency is used in the Republic of Sao Tome and Principe. The exchange rate against the ruble is approximately the same as that of the real.
Relationships in the foreign exchange markets
All world currencies are interconnected. There are a sufficient number of international currency exchanges where the purchase and sale of monetary units of different countries takes place. A timely and correct forecast of the exchange rate allows financial institutions to earn on such operations.
Trading on such exchanges is not easy. Must always be inkeep abreast of world news and understand the factors that affect the value of banknotes. In order to make a forecast of the exchange rate, it is necessary to have knowledge of how the exchange rate is formed, what its possible corridor is, and the probable reasons for its changes. In addition, you need to have a certain amount of luck, as there are sharp unexpected collapses or strengthening rates.
What is the currency in Belarus?
In the early 1990s, after the country abandoned the Soviet monetary units, the Belarusian ruble appeared. The policy of the country's government was aimed at comprehensively maintaining the course. So, in 2004-2008, the exchange rate of the ruble against other currencies did not change at all. This was achieved by various mechanisms.
It is noteworthy that the currency in Belarus has a variety of denominations of banknotes, even 200 thousand Belarusian rubles.
Recommended:
Why didn't Sberbank issue money through an ATM? The ATM did not dispense money, what should I do?
Sometimes when using an ATM, you can get into some situation, and not always pleasant. It often happens that the ATM deducted funds from the account, but did not give out the money. And although this can happen to anyone, not everyone knows what to do. So how do you behave in such a situation?
The cheapest real estate in the world: country ranking, top 10, country selection, exchange rates, personal preferences and convenience of living
Despite any crises, the demand for real estate in the world is quite high. But still, with a sufficiently large demand outside of Russia, you can find good housing with a fairly small budget. Although it should be understood that the worse the economic situation in the country, the lower the cost of housing
Currencies of the world. List of the most expensive and cheapest
Each country has its own national currency in circulation. The list of currencies of the countries of the world is very wide. However, it can be divided into several main groups. So, for example, there is a currency of European countries, African, countries of North and South America, as well as Asian countries, Australia and Oceania. In addition, the list of world currencies can be divided into two categories: the most expensive and the cheapest monetary units
The currency of Afghanistan: the history of the currency. Curious information about the currency
Afghan currency Afghani has almost a century of history, which will be discussed in this material
What is a currency? Russian currency. Dollar currency
What is the state currency? What does currency turnover mean? What needs to be done to make the Russian currency freely convertible? What currencies are classified as world currencies? Why do I need a currency converter and where can I find it? We answer these and other questions in the article
