Currencies

Money What is money?

What Lead Us Here

What Lead Us Here Gold Coin and Gold Bullion Standards

What Lead Us Here Bretton Woods System U.S. dollar fixed to Gold Other Nations currency fixed to U.S. Dollar Set up IMF and IBRD (Now World Bank)to hold currencies, maintain ratios and make loans

What Lead Us Here Nixon eliminates U.S. gold standard

Purpose of IMF

Purpose of IMF To promote exchange rate stability

Purpose of IMF To facilitate the international flow of currencies and hence the balanced growth of international trade

Purpose of IMF To promote international monetary cooperation

Purpose of IMF To establish a multilateral system of payments

Purpose of IMF To make resources (SDRs plus technical help) available to member nations experiencing balance-of-payments difficulties

Special Drawing Rights The value of the SDR is based upon the weighted average of a basket of four currencies. Weights for 2011-2015 U.S. dollar 42% Euro 37% Japanese yen 19% British pound 11%

Central Banks

Central Banks Set policies for currency manipulation

Central Banks Buy and Sell currencies to try and affect value

Central Banks Hold reserves in Gold, SDR or other currencies

Exchange Rate Types

Exchange Rate Types Free Floating

Exchange Rate Types Pegged

Exchange Rate Types Banded Peg

Exchange Rate Types Non Convertible

$US as a World Currency

$US as a World Currency 85% of all currency exchanges have the $US as half the transaction

$US as a World Currency $ is a reserve currency held by many central banks

$US as a World Currency $ is investment currency in many capital markets

$US as a World Currency $ is a transaction currency in many international commodity markets