A long time ago, monetary value did not exist. In reality, there were not even coins or bills. People use the exchange of goods or services in order to get what they wanted. Until the currencies and the monetary system arrived.
But, What is the monetary value today? Does everyone have the same? These and other questions are the ones that we are going to solve next.
What is the monetary value?
First of all, we must begin by explaining what we mean by monetary value. In fact it is the power that has a currency to obtain goods and services with it. As an example, imagine that you have a 2 euro coin. And that there is a product that is worth two euros and another that is worth three euros.
In your case, that currency that you have is only enough for you to buy a product that is worth two euros or less, but you will not be able to buy anything that exceeds the monetary value that you have in your possession.
You should pay attention that at this moment the monetary value does not only refer to the coins, but also the bills themselves come into play. And not only in terms of Spain, or Europe, but the whole world (euros, dollars, yen ...).
Therefore, it is important to know what the current monetary system is.
Why is monetary value so important?
In the old days, people did not use coins or bills, but goods and what they could do. When they needed skins, they exchanged them for whatever they had (perhaps animals, well vegetables, etc.).
However, with the passage of time this was changing and the coins appeared. From that moment on, transactions were carried out with them, in such a way that Depending on how many coins you had, that way you could buy.
But in each country different currencies were created, which had different values, and that made a currency more or less powerful (and that you could buy more or less with it).
Therefore, it is important to know the monetary value, because it is what helps us to know the power that one has when possessing them to obtain goods and / or services, either in the same country or in different countries.
The International Monetary System: responsible for the monetary value of money
The monetary value of a currency, including a country, It is governed by the International Monetary System, known by its acronym SMI. It is a compilation of standards, agreements and organizations that manage the commercial and financial transactions of the countries.
What it does is determine rules so that monetary flows can be regulated, that is, so that there are money exchanges, so that there are no imbalances in monetary value, etc.
To this end, The objectives you are looking for are the following:
- Impose a series of laws, rules and regulations for all countries so that there is a balance in transactions.
- Make sure that there is currency convertibility, that is, that currencies can be exchanged from one country to another, or vice versa.
- Provides liquidity so there are no restrictions.
- Correct and control the imbalances that may exist between the payments of the countries, or facilitate financing.
- Create international means of payment.
The current organizations of the International Monetary System
If you've never heard of them as such, you may be surprised. But the truth is that everyone, to a greater or lesser extent, has heard of them, even if it is their name. As an example:
- International Monetary Fund (IMF)
- Bank for International Settlements (BIS)
- World Bank (WB).
These organizations would be at the international level. But also there are others at the regional level, or by continents, that should be paid attention, as an example:
- European Union (EU)
- Inter-American Development Bank (IDB)
- Organization for Economic Cooperation and Development (OECD)
- African Development Bank (AFDB)
- …
These are the coins with the highest monetary value
Before concluding, we want to bring you closer to some of the coins that are considered the most expensive in the world because its monetary value, in exchange, is the highest that exists. Did you think that the dollar or the pound were the most expensive? Really discover the ones that prevail over the rest of currencies:
The Kuwaiti dinar
This coin is considered the most expensive because, in exchange, for 1 KWD would give you almost 3 euros. Taking into account that Kuwait is a small country, but with great wealth and a currency of great monetary value, mainly due to oil exports (80% of its income comes from there).
Bahrain dinar
We are not going very far, in this case to 1 BHD, which would be equivalent to almost 2.50 euros. The country is located on the island of the Persian Gulf and its income comes from "black gold", that is, in addition to oil.
Omani Rial
With almost 2.40 euros for each OMR Whatever you have of this coin, this country on the Arabian peninsula is one of the richest.
Jordanian dinar
The Jordanian dinar, or JOD, differs a bit from the previous ones, since we have already gotten to almost 1.30 euros for each. But in any case, it is one of the currencies with the highest monetary value that currently exists.
