What is money, where did it come from and what is the cheapest currency in the world?

The concept of "currency" can be viewed in the modern world from two perspectives. The first is the unit by which the money of any state is measured. The second is a money sign.

Usually, when you say this word, it means exactly the money sign. For example, when they say "the Russian currency has strengthened". This means that the Russian ruble has become stronger compared to other money, for example, the US dollar.

History of occurrence

If we talk about where the banknotes come from, it's worth mentioning that the prerequisite was ordinary barter. In simple words, barter means the exchange of goods for goods. Before the appearance of money, people simply exchanged wool, food and other material values.

In the process of development of trade operations, the need for such a commodity grew, which could be exchanged for anything. In this connection, the operations on the exchange of goods for precious metals began to gain popularity. In trade, mainly silver and gold were used, the price of which was relatively stable.

Since there was no definite form, the merchants began to independently harvest gold and silver in the form of ingots on which weight was indicated, as well as a sample of metal. Due to the large number of frauds, such functions were gradually started to be performed by state authorities.

Money Signs in Ancient China

Scientists believe that the first forms of paper currency were used even in ancient China. In Europe, such currency began to appear in the form of receipts for the acceptance or storage of goods and precious metals.

The first step to the mass issue of paper currency was made by the French Minister of Finance John Lo, who at the beginning of the 18th century decided to print bank notes that were not confirmed by gold resources to increase the wealth of the country. His idea failed.

It happened because the amount of paper money must be confirmed by the gold reserve and the quantity of goods in the country.

Although this view to date is twofold. From the time of the First and Second World Wars, the countries decided to become attached not to gold, but to the US dollar, which was to be completely covered by gold reserves and to ensure the money turnover of all foreign exchange operations in the world.

But in 1964, when the number of dollar currency signs issued in the United States reached the amount of gold and foreign exchange reserves of the country, such a system of currency security was defeated.

To date, not one currency in the world is tied to a gold reserve. The level and the rate in them are regulated solely by the demand and supply in the currency markets.

The cheapest currency in the world

The world is so vast and huge that there are a lot of bank notes in it. Everyone knows US dollars, euros, rubles. But there are also such currencies, which are less common, and the demand for them is much smaller.

For example, the cheapest currency in the world is Vietnamese dong. You will not believe, but if you compare it to the ruble, then one such monetary unit is cheaper at cost than one Russian kopeck (the ratio to the ruble is about 0.0016 rubles per dong).

Speaking of which is the cheapest currency in the world, one can not but mention the Iranian real. Its ratio to the ruble is approximately equal to 0.003 rubles. For one real. Such low cost is caused by perpetual conflicts and sanctions of Western states. However, the Iranian authorities are not upset, since the main means of calculation is not the real, but oil, the reserves of which this country will last for many years.

Like the Iranian real, we can say that the cheapest currency in the world is domra. Most likely, you have not heard of it. This currency is used in the Republic of Sao Tome and Principe. The exchange rate relative to the ruble is about the same as that of the real.

Relations in foreign exchange markets

All the world's currencies are interconnected. There are a sufficient number of international currency exchanges on which the purchase and sale of monetary units of different countries. A timely and correct forecast of the exchange rate allows you to earn financial institutions for such operations.

Trading on such exchanges is not an easy task. It is necessary to be always up to date with the world news and understand those factors that affect the value of currency notes. In order to make a currency rate forecast, you need to know how the course is formed, what its possible corridor is, and the likely reasons for its changes. In addition, it is necessary to have some luck, as there are sudden sudden landslides or strengthening courses.

What is the currency in Belarus?

In the early 1990s, after the country's refusal from Soviet monetary units, the Belarusian ruble appeared . The policy of the government of the country was aimed at the full maintenance of the course. Thus, in 2004-2008, the ruble rate did not change with respect to other currencies at all. This was achieved by various mechanisms.

It is noteworthy that the currency in Belarus has the most different denominations of monetary denominations, even 200 thousand Belarusian rubles.