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How much do you know about world currencies

Finance: World Currencies In The News

Have you ever wondered about currency around the world? I’ve made a personal declaration recently where I decided that I’m going to take my kids around the world. I want them to learn more about other cultures and economies. However, in order to start planning, I have to organize my research, so I’ve decided to share my findings with you all, just in case you’re curious about world currencies just as much as I am.

If you’re planning to take a trip to Mexico, China, or a European country then the next few paragraphs are going to give you extra special insight into the money. I’m sure you’ve probably seen the currency exchange kiosk at the mall or an airport. Below are brief descriptions and overviews of each currency.

World Currencies: The Mexican Peso

The currency in Mexico is called the Mexican Peso. The symbol of the Peso is MXN. Modern Dollar and Peso currencies were common in the 15th-19th century and known as the Spanish Dollar. Mexican Pesos are the 10th most traded monetary currency globally from Latin America to the United States. 

In 1993, there was a revaluation of the Mexican Peso. The ISO 4217 code used to be MXP but now it is known as MXN. The symbol “c” or cent is subdivided into 100 centavos or one Peso. On October 31st, 2018, the exchange rate of the Mexican Peso was $20.32 per U.S. Dollar and $23.00 per Euro.

Pesos Oro or gold weights was the name first used for the Mexican Peso. Silver weights or Pesos Plata was the next name used compared to the British Pound.

World Currencies: The First Mexican Peso

The Spanish were the first to issue the eight-real coins issued to Mexico. They named the coin Peso. The Spanish empire were the ones to issue these so-called Spanish Dollars. These Spanish Dollars were also known as “pieces of eight” that were is wide circulation in Asia and the Americas. Before the Coinage Act of 1857, the United States actually accepted the Spanish Dollar as legal tender for purchases and this was at the height of the Spanish Empire in the early 19th century.

World Currencies: The New Mexican Peso

During the 20th century, throughout Latin America, the Mexican Peso was one of the most stable currencies throughout the region. Latin America did not experience hyperinflation periods or economic turmoil that was common to the other countries within the area. In the late 1970s, there was an oil crisis and this led to Mexico defaulting on its external debt in 1982. This is when the country experienced a horrific case of what is called “capital flight.” Mexico experienced devaluation and severe inflation until President Carlos Salinas introduced the Stability and Economic Growth Pact. This is when the new Mexican Peso was introduced and it was written as “N$”.

Now, thanks to the economic stability in Mexico and foreign investment growth, the Mexican Peso is now the 15th most traded currency in the world. 

World Currencies: The Renminbi Currency

The official currency for the People’s Republic of China is called the Renminbi. A Chinese yuan is the basic unit of the Renminbi. Some people say that the Chinese yuan is a trade war casualty, but this is only an opinion.

World Currencies: The Euro Currency

The official currency of 19 out of 28 European Union members is called the Euro. These state groups are known as the Eurozone or area of the Euro. It is the second largest and most traded monetary currency in the foreign exchange market after the dollar of the United States. 

The United Kingdom’s monetary currency is known as the Pound. It can also be referred to as Sterling, but this is a lot less common. This official currency can be used several places throughout the United Kingdom and they include: 1) The Isle of Man, 2) Jersey, 3) South Georgia, 4) The South Sandwich Islands, 5) the United Kingdom, 6) Guernsey, 7) The British Antarctic Territory and 8) Tristan da Cunha. 

World Currencies: The United States Dollar

The official currency of the United States is termed the United States Dollar. The code or sign is USD and US$. Since 1792, the US Dollar has served the United States and all of its territories in accordance with the U.S. Constitution in the year 1792. Congress has the power to actually “coin money” in the U. S. Constitution Section 8, Article I.

The term dollar is also referenced to the milled dollar of the Spanish. The Coinage Act was passed in the year 1792. This act states that a coin had a monetary value of 8 units of currency from Spain.

The United States Dollar is the world reserve currency. This has great benefits for the United States because other countries trade their currency for the United States Dollar. However, the U.S. Dollar is shaky because of the trillion-dollar deficit, and other countries are starting to trade in their bonds that they hold with the United States.

Reader Question

Have you ever been to a country and the exchange to American Dollars really wowed or surprised you?

 

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