Exchange Rate
Why can’t the world have one currency? Having the same currency everywhere will stop people from exchanging their old currency for their new one after entering every new country. This problem was solved in Europe by the creation of the Euro. The National Treasurers think we should have one currency around the world. Having similar currencies in the world have many pros and cons.
Why can’t the world have one currency? Having the same currency everywhere will stop people from exchanging their old currency for their new one after entering every new country. This problem was solved in Europe by the creation of the Euro. The National Treasurers think we should have one currency around the world. Having similar currencies in the world have many pros and cons.
Effects of One Currency
Positive
There are many positive aspects of having one currency in the world.
One of the positive aspects does not have to exchange banknotes every time entering a new country. It will be easier to travel within Central America and west Asia with so many small countries. Having one currency in Europe has been very successful. Economics will improve as well in many countries by having one currency because; it will be easier to trade among countries. Can you imagine how easy it will be to get rice from Asia or pasta from Italy with one currency? We can trade without having to exchange the United State dollar to the Chinese Yuan. The time it takes to trade among countries will decrease with everything equaling one value.
Negative
There are many reasons why the world does not change to one currency. The difference between different countries banknotes and coins are how they look. With the same currency, the world would have to decide what would be on the bill. Will it be the president of the United States or the Prince of Saudi Arabia? What language will it be printed in, Chinese, or French? As well, one of the questions asked are who will print the banknotes. If one country prints too many bill the value is easily dropped over the whole world. Many political problems will be created by having one currency.
U.S. Dollar
In the United States, the dollar is the basic unit of currency. The U.S. Mint is in charge of producing coins for the nation. The Federal Reserve Bureau of Engraving is in charge of producing bank notes for the United States. The dollar is known as the standard unit of currency in the commodity market across the globe. The $, is the symbol used before any amounts of American dollars. Some believe that the $ was copied from the Spanish dollar which featured a "P" over an "S" which was the sign for their silver dollar. The first dollar at coin issued by the U.S. Mint was around the same size of the dollar and had the same composition. After the American Revolution, the Spanish and U.S. silver dollars circulated side by side in the Untied States. All money printed has equal value. The value is 1.5 grams in gold for each dollar.
In the United States, the dollar is the basic unit of currency. The U.S. Mint is in charge of producing coins for the nation. The Federal Reserve Bureau of Engraving is in charge of producing bank notes for the United States. The dollar is known as the standard unit of currency in the commodity market across the globe. The $, is the symbol used before any amounts of American dollars. Some believe that the $ was copied from the Spanish dollar which featured a "P" over an "S" which was the sign for their silver dollar. The first dollar at coin issued by the U.S. Mint was around the same size of the dollar and had the same composition. After the American Revolution, the Spanish and U.S. silver dollars circulated side by side in the Untied States. All money printed has equal value. The value is 1.5 grams in gold for each dollar.
The Great Depression was a time of great economic need in America. The depression lasted from 1930 through 1939. The depression put over nine thousand banks out of business and nine million bank accounts were wiped out. As well, the price of the stock market fell forty percent. With eighty six thousand businesses shutting down, the unemployment rate went from nine percent to twenty-five percent. The United States had about fifteen million people jobless and those with jobs pay average decreased by sixty percent. The U.S. Dollar was scarce during the Great Depression.
The National Treasury is one of the main collectors of the U.S. revenue. An Act of Congress established the National Treasury in 1789 to manage government revenue. Alexander Hamilton was the first secretary of the National Treasury. The National Treasury prints and mints all paper currency and coins in circulation that goes through the Bureau of Engraving and Printing and the U.S. Mint. The Treasury also collects all federal taxes through the Internal Revenue Service (IRS). The Treasury designs, prints, mints, and authorize mediums of exchange used by the US Government, including currency, coins, stamps, and bonds. Another task of the Treasury is to recommend and implements the economic, fiscal, and currency policies of the President. Regulating exports and imports, is another task for the National Treasury. Enforcing all U.S. laws of financial nature, and collects all United States Revenue such as income taxes.
Yuan
Yuan is the official currency of the Republic of China. The renminbi is the legal tender in the mainland China and is issued by the People's Bank of China. Yuan basically means round coin when translated from Chinese to English. The renmbi's exchange rate is 8.28 to one U.S. dollar. One yuan is equal to around twelve cents in the United States of America. As well, one yuan is divided into ten jiao or mao. Jiao are worth about one cent and mao are divided into to ten fen. When other countries buy products from China, they have to convert their currency to yuan.
Rupee
India was one of the first issuers of coinage in the world. India, a wonderful land in Asia, now uses the rupee as its main currency. Some other places that uses the rupee are; Maldives, Nepal, Mauritius, Pakistan, the Seychelles, and Sri Lanka. Rupee means silver in English and has some similarities like the American dollar. The rupee's abbreviation is R's. and is divided into one hundred paise just like the dollar bill is divided into one hundred cents.
Dong
Vietnam uses the dong as their official currency. The dong is divided into hao and the hao is divided into ten xu. The banknotes exist as 200, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000. Dong, which is translated into the word copper in English, was named while Vietnam was still part of French Indochina. The dong was changed to the liberation dong in 1975, because of the fall of Saigon. The new dong is equal to ten old dongs. The Vietnam still has the second lowest currency in the exchange market right before, Romania since June 2005.
Rumble
The rumble is used in many countries including Russia. The Russian rumble has been used in Russia for many centuries. In ancient times, the Russian currency was called "tselkovyi." The name rumble came originally from the Russian word “rubit” meaning to chop. Russians named their currency rumble because it was originally a piece of certain weight silver chopped off. The modern rumble was introduced after the Soviet Union split in 1992.
Yen
Japan, one of the most prospering countries, uses the yen as their national currency. The Meiji government to replace the Edo period first introduced the yen. They needed to replace this because, their was no exchange rate between the coins. In 1949 to 1971, one U.S. dollar was equivalent to three hundred sixty yen. It was like this, because of the Bretton Woods system that collapsed. At the time, the yen had no true original exchange rate. The Currency Act of 1871 established the yen as an official currency of Japan. Japan named their currency yen because yen means round object in English.
Riyal
The riyal is Saudi Arabia's national currency. The word riyal is of Spanish and French origin. The riyal was first introduced in the Ottoman Empire during the nineteenth century. The riyal was first used in Iran in 1930. At that time, it was known as the kran. The Saudi Arabian coins are called halalahs. There are ones, fives, tens, fifties, one hundreds, and five hundreds riyals. These are based off of five, tens, twenty fives, fifties, and one hundreds based out of halalahs.
South America and Africa
Much of South America and Africa was colonized by the French, Spanish, and British during exploration times. Most of South America use the peso because of the spanish settlements. Africans use the franc after being a colonized by the France. In the Mediterranean region, many countries use the pound sterling's after the impact of Europeans in the area. These European countries impacted many of the present day countries economy.
Franc
Even though the franc is used in over twenty countries, it is not used in the country where it was created. The franc was the national currency of France between 1360 through 1641 and once again between 1795 until 1999. The first franc was a 3.87-gram gold coin minted in 1360. The franc is divided into one hundred centines. Even after France switched over to using the euro many countries still used the franc such as: Benin, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Comoros, Congo, Côote d'Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Liechtenstein, Madagascar, Mali, Niger, Rwanda, Senegal, Switzerland, and Togo. The Switzerland is the only European nation that stills has their currency named franc.
Peso
While settling the western hemisphere the Spanish also established the peso in the Americas. Today the countries of Chile, Colombia, Cuba, Dominican Republic, Guinea-Bissau, and Mexico all use the pesos. The Spanish originally established all of these countries in the 1600s and 1700s. As well, the peso is used in the Philippines and Uruguay. The average peso is 27 grams and 92 percent pure silver. Even though the peso is used in most of the former Spanish colonies, Spain prefers to use the euro.
Pound
When King Henry II of England introduced the pound as the currency of England, he probably did not think the pound is the currency of eight other countries. King Henry II proclaimed the currency in 1158 in the great power nation of Great Britain. The pound is now called sterlings because, sterlings in French translated to stiere in Old English. Before the United Kingdom adopted the Euro, they used the pound sterling. The pound is broken into one hundred pence in the entire nation that uses it: Cyprus, Egypt, Falkland, Islands, Gibraltar, Lebanon, Siena, Sudan, and Syria.
Euro Currency
One of the newest currencies introduced in the world is the euro. The euro is used in the European Community nations. The European Community includes twelve nations: Austria, Belgium, Finland, France, Greece, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. These countries officially adopted the currency on January 1, 1999, but did not go into circulation until January 1, 2002. The banknotes issued were five, ten, twenty, fifty, one hundred, two hundred and five hundred, and the eight coins issued ranged from one cent to two euro. The Euro is an important currency in Europe.
One of the newest currencies introduced in the world is the euro. The euro is used in the European Community nations. The European Community includes twelve nations: Austria, Belgium, Finland, France, Greece, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. These countries officially adopted the currency on January 1, 1999, but did not go into circulation until January 1, 2002. The banknotes issued were five, ten, twenty, fifty, one hundred, two hundred and five hundred, and the eight coins issued ranged from one cent to two euro. The Euro is an important currency in Europe.
The euro was invented for many reasons. One of the main reasons the euro was made was to make it easier to trade among European nations. Trade was easier because the euro had equal value in all the countries so, they did not have to convert it into franc or any other European currencies. With the entire European nations combine, they are as wealthy as the United States. Another main reason the euro was invented was so tourist would not have to exchange their money after entering each new country. Though the euro is a currency, Europe considers it as much more.
