Today, in the philistine environment, it is unlikely that anyone even knows about the world's currency systems, but in the entire history of their existence there were three types that replaced each other, starting from the second half of the XIX century, let's consider each of them.For a long time, the gold standard was considered a reference system that was used in Russia and in many other world countries in the period from the second half of the XIX century to the 30s of the last century. This system determined the exchange rate of the currency by the weight of gold. So, at the end of the XIX century, the Russian ruble was equal to 0.77 grams of gold. In all countries where the gold standard was used, currency exchange was mandatory for gold.Of course, in order to ensure the viability of this system, gold had to be freely imported and exported between countries. In addition, in each state that used the gold standard, a balance was strictly maintained between the amount of gold in the treasury and the amount of money in circulation. Quotes against other currencies were also determined based on this proportion.Bretton Woods Gold and foreign exchange system During the depression that began in the 30s of the last century, countries began to abandon the gold standard system. So, since 1944, a new Bretton Woods gold and foreign exchange system has been formed. The purchase and sale of currency in this system was carried out according to the exchange rate at a fixed bank rate. The foreign exchange bank exchange rate in this system was determined not by the amount of gold, but by a stable exchange rate, that is, the US dollar against other currencies.However, this system did not last long, in 1971, the States recognized the impossibility of ensuring the exchange of American currency for gold in the smallest.The floating exchange rate system has been implemented since that time and to this day, and a floating exchange rate system successfully exists. The basis of this system is that the quotations of currencies of different countries are set to a proportional ratio of supply to demand, as on the stock exchange.So, if the demand for Danish goods outside Denmark itself is growing, the demand for Danish kroner, which pays for purchases of these goods, increases accordingly. At the same time, if imported goods from Denmark do not increase in volume, and demand is not higher than supply, then the exchange rate of the Danish krone will also increase.
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