The concept of "currency" can be viewed in the modern world from two perspectives. 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 precisely a monetary symbol. 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 money came from, it’s worth mentioning that ordinary barter became a prerequisite. In simple words, barter means the exchange of goods for goods. Before the advent of money, people simply exchanged wool, food, and other material values.
In the process of development of trade operations, the need for such a product that could be exchanged for anything was growing. In this regard, operations to exchange goods for precious metals began to gain popularity. In trade, mainly silver and gold were used - metal, the price of which remained relatively stable.
Since there was no definite form, the merchants began to independently collect gold and silver in the form of ingots, which indicated the weight, as well as a sample of metal. Due to the large number of frauds, such functions gradually began to be performed by public authorities.
Banknotes 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 made by French Finance Minister John Law, who at the beginning of the 18th century decided to print bank tickets not confirmed by gold resources to increase the country's wealth. His idea failed.
This happened due to the fact that the amount of paper money must be confirmed by the gold reserve and the quantity of goods in the country.
Although this opinion today is twofold. Since the times of the First and Second World Wars, countries decided not to attach themselves to gold, but to the US dollar, which was to be fully covered by gold reserves and to ensure the monetary circulation of all foreign exchange operations in the world.
But in 1964, when the number of dollar currency notes issued in the United States reached the number of gold and foreign exchange reserves of the country, such a system of currency security was defeated.
To date, not a single currency in the world is tied to gold reserves. The level and exchange rate in them is regulated exclusively by supply and demand in the foreign exchange markets.
The cheapest currency in the world
The world is so vast and huge that a great many banknotes are distributed in it. Everyone knows US dollars, euros, and 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 will not believe it, but if you compare it with the ruble, then one such monetary unit is cheaper in cost than one Russian penny (the ratio to the ruble is approximately 0.0016 rubles per 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 low cost is caused by eternal conflicts and sanctions of the western states. However, the Iranian authorities are not upset, since the main means of calculation is not real, but oil, the reserves of which this country will last for many more years.
Like the Iranian real, we can say that the cheapest currency in the world is domra. Most likely, you have not heard of her. This currency is used in the Republic of Sao Tome and Principe. The course against the ruble is about the same as that of the real one.
Relations in the foreign exchange markets
All world currencies are interconnected. There are a sufficient number of international currency exchanges on which the purchase and sale of monetary units of different countries takes place. Timely and correct forecast of the exchange rate allows financial institutions to earn money on such operations.
Trading on such exchanges is not easy. You must always be aware of world news and understand the factors that affect the value of banknotes. In order to make a forecast of the exchange rate, you must have knowledge of how the exchange rate is formed, what its possible corridor is, and the probable causes of its changes. In addition, it is necessary to have some luck, as there are sudden sudden collapses 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 comprehensively maintaining the course. So, in 2004-2008, the ruble exchange rate against other currencies did not change at all. This has been achieved by various mechanisms.
It is noteworthy that the currency in Belarus has a variety of denominations of banknotes, even 200 thousand Belarusian rubles.