A long time ago, monetary value did not exist. In fact, not even coins or bills existed. People use the exchange of goods or services to be able to acquire what they wanted. Until the currencies and the monetary system arrived.
But What is monetary value today? Do they all have the same? These and other questions are what we are going to solve for you next.
What is monetary value
First of all, we must begin by clarifying what we mean by monetary value. It is actually the power that a currency has to acquire goods and services with it. For 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 you have is only enough 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 bear in mind that the monetary value currently refers not only to the coins, but also the bills themselves come into play. And not only with respect to Spain, or Europe, but to 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 made 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 it was possible to 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 acquire goods and / or services, either in the same country or in different ones.
The International Monetary System: responsible for the monetary value of money
The monetary value of a currency, even of a country, It is governed by the International Monetary System, known by its acronym SMI. It is a set of rules, agreements and institutions that manage the commercial and financial transactions of the countries.
What it does is establish 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.
In this sense, the objectives for which he watches 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.
- Provide 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 institutions of the International Monetary System
If you've never heard of them as such before, you might be surprised. But the truth is that all, to a greater or lesser extent, have heard about them, even if it is their name. For example:
- International Monetary Fund (IMF)
- Bank for International Settlements (BIS)
- World Bank (WB).
These institutions would be at the international level. But also there are others at regional levels, or by continents, which must be taken into account, such as:
- 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, at the exchange, are the highest that exists. Did you think that the dollar or the pound was the most expensive? Really discover the ones that prevail over the rest of the currencies:
The Kuwaiti Dinar
This currency is considered the most expensive due to the fact that, 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 with great monetary value, mainly due to oil exports (80% of its income comes from there).
Bahraini 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, from oil as well.
Omani Rial
With almost 2,40 euros for each OMR Whatever you have of this currency, 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, because we already got down to almost 1,30 euros for each. But still it is one of the coins with the highest monetary value that exists today.