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History Of Currencies – That May Surprise You

By xDirect Markets Team Tuesday, Aug 8, 2017 | World News

DOLLAR: Czech kingdom of BOHEMIA began minting coins from silver mined locally in JOACHIMSTHAL AND PRINTED LION on the back of the coin on 15th January 1520. The term JOACHIMSTHALER was coined by “COUNT HIERONYMUS SCHLICK” of BOHEMIA.

Later for more handiness and common usage it was shortened to THALER or TALER. The Germans literally named it JOACHIMSTHAL which means JOACHIMS VALLEY or JOACHIMS DALE.

The sign which was first scribed in reference to business correspondence in 1770’s was “pˢ” which referred to SPANISH AMERICAN PESO i.e. SPANISH DOLLAR in NORTH AMERICA. The manuscripts of late 18th century and early 19th century came to be written over the “p” developing a close equivalent to $ mark.

The U.S. is one of the many countries to call their currency as Dollar which is widely traded on Forex market & termed an USD. It is the base currency to measure the value of its counterpart currencies like EUR/GBP/YEN.

POUND: Origins of pound have its roots deep embedded during the reign of King Offa of Mercia around 760. It derives its name from the Latin word Libra which stands for weight and balance, the word further got constructed into ‘Libra Pondo’ which signifies the pound weight. The word Libra is no longer associated but it makes its presence felt in the “£” symbol with an embellished “L” and the acronym for the unit of mass “lb”.

Use of the word “sterling” referred to pennies not pounds. Its origins are mystery and some researchers affirm that it derived perhaps from esterlin, a Norman word for little star or listerling (an Arab word for money).

Pound Sterling is commonly known as pound (GBP) and is official currency of UNITED KINGDOM. It’s the fourth most- traded currency in the market with the title of oldest currency still in use. The pound value is determined by supply and demand. It has survived as an independent currency, while single currency was adapted by Europe, ‘THE EURO’.

Current scenario is BREXIT, where U.K may take time to establish itself as a sole identity.

EURO: The Euro was introduced on 1st January 1999. The existence of Euro came with the acceptance of Maastricht Treaty. Countries began participating to fix their currencies to the Euro.

Euro is commonly accepted currency for 17 of the 27 countries of European Union. These countries combine together to form Euro zone. Currency virtually came to life in the year 1999 followed by notes and coins in 2002. Euro (EUR) is a single sharing currency. Euro replaced the former national currencies and slowly expanded the rest of Europe. It was launched as an electronic device.

FRANC: Switzerland and Liechtenstein shares a common currency known as Swiss Franc. It’s shortened name is CHF. The Swiss National Bank (SNB), a central bank, issues bank notes and federal Swiss mint issues coins. Swiss Franc is also called hard currency.

The fiscal laws of May 2000 required 40% of gold covers for currency in circulation. This technique enables the currency to remain stable and made Swiss banks more attractive to international investors. The country enlisted 75 entities and 25 cantons – all produced their own individual coins.

First Swiss banknotes printed in the year 1907, since then eight different series of bank notes are been distributed. These banknotes have four national languages scripted on them, namely: Romanist, French, German and Italian.

YUAN: Chinese Yuan (CNY) is also called RENMINBI (RMB). Renminbi is also recognized as ‘people’s currency’. The emblem of Chinese Yuan is ‘¥’. China is the first country to introduce currency for easy trade on barter system.

Yuan was introduced as a silver coin in the year 1889 and these silver coins were derived from the Spanish dollar “peso”. The Chinese Communist Party’s Peoples Bank of China first issued Chinese Yuan.

The valuation & devaluation of Yuan majorly affects the world markets & other currencies.

YEN is the official currency of JAPAN and third most traded currency on Forex market. It is also used as a reserve currency. Initially it was brought into existence by ‘Meji Government’. The name Yen is pronounced as ‘en’ in Japanese. Yen is also known as safe- haven currency.

The word yen literally means ‘round’ in Japanese. The Chinese traded bulk, the Chinese called them (silver round) for their circular shapes. In past years one yen was equivalent to 100 sen. According to researchers, sen is no longer accepted in Japan. The spelling of yen has been standardized in English for mainly English speakers who visited Japan. It was pronounced (je) in the 16th century by Japanese. Portuguese missionaries had spelled them “ye”.

xDirect Markets Team

xDirect Markets is one of the leading brokerage firm in the trading industry with vast number of clientele followers. We are ranked as the top most firm with 9 years of experience along with top-notch trading services. We widely trade in Forex, Indices, and Commodities.

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