currency future

"currency future"-what is the reason for the difference in the values of currencies in the world Why are there cheap coins and expensive coins, And how did the coins appear

currency future

The first question: How was the buying and selling system in the old days

In the old days, currencies were not known at all, but the system was built based on Benefit Exchange, or as we call it (barter).

If a person wanted something from a certain product, he would replace it with what he produced and take what he wanted, if we take for example Egypt was an ancient exchange of food such as wheat for wood from Puntland (present-day Somalia).

The second question: How did the money start

In 2000 BC money began to flow into the market, and Aydin introduced a unified coinage.

The Chinese introduced banknotes as an alternative in 600 BC, and due to European colonization, banknotes spread further to the world.

History of money

The third question: What do the coins look like recently

With the availability of the internet, the payment method had to be developed, so electronic transactions appeared. 

Electronic means of payment differ into:

Credit card: this card gives full credit for a certain period to its owner, enabling you to buy any item at any price, whether it is at home or abroad.

Instant debit cards: they do not give credit to the owner, but they deduct the transaction value from the account immediately, hence the name was appropriated. 

ATM cards: an electronic machine that allows customers to access their accounts via magnetically encrypted cards. 

Smart cards: cards with a magnetic chip that holds and stores the user's banking information and allows the user to exchange its values without signing or proving his identity. 

Digital currencies: government cryptocurrencies that take pictures of electromagnetic pulses stored on a hard drive in a computer that can pay, add or transfer only by putting numbers. 

Money and banks

Having explained the evolution of currencies from ancient to modern, let's answer our question.

The fourth question: Why do currency values differ in the world

I will explain it to you with the old money that was called commodity money: money was used as a measure of value for the rest of the goods and played the role of an intermediary in exchange.

The ancient Greeks used cattle as money, the Indians used tobacco, the Chinese used knives, and the Egyptians wheat, for each country there was a commodity that it used as money to replace any product it wanted.

We talked in an old South Korean article and electronic devices that there is a term called currency war and that each country competes to make its currency cheap, and we also talked in the same article that there are two ways for the country to make the value of its currency cheap, namely (fixed and floating exchange rate system).

In a fixed exchange rate system, the state must peg its currency to another international currency, for example (the US dollar), then the state must have a large export sector, then the state has holdings that make it able to give the required amount to the price of its own currency.

In the days of the British occupation of Egypt, the value of the Egyptian pound at that time was equal to 20 thousand Egyptian pounds currently, and the reason for this is Egyptian cotton, since the British occupation of Egypt began, the English were expanding cotton cultivation to provide the raw material necessary for British factories, and this was what was given to the Egyptian pound its value at that time.

However, due to the colonial consumption of cotton, the value of the Egyptian pound has decreased in modern times.

We conclude from all this that the reason for the difference in currency values between countries is that each country has its own export sector or a product that is more than demand, which raises the value of the currency.

And here we may have reached the end of the article, I hope you have enjoyed it, I will see you in a new article Well, God willing, peace be upon you, and God's mercy and blessings.