Introduction of Euro
At long last euro was established. It was a surprise that in the begining, British did not participate in establishing euro. It is a fact the even euro is facing the competition within and outside of Europe.
Currency Exchange Rate History
The first monetary policy was set up in it’s true sense in Colonial part of New England. The use of paper money came into existence by this New England colonies. That time, four types of paper money were existed in the market.
The colonial government legally permitted those paper money for paying taxes. And as the days go on, other colonies started printing some additional note types outside the union.
One significant movement was initiated by the Latin Monetary Union (LMU), although this was conceptualized by the French. After the independence in 1830, Belgium took up and started practicing the French franc.
First authorized foundation The LMU was the official federal association of authorizing franc. At that time, eighteen countries started practicing the Gold franc as their legal tender.
Out of 18, four member countries Italy, Belgium, France, and Switzerland Consented on the issue of conversion rate from gold to silver and started making gold and silver coins as the legal tender for all. Most of the countries of Europe started to maintain Gold standard for exchange of money.
In reality, LMU did not have any single currency. So, there was the need of the conversion cost, although it was as less as 1.25%. LMU was able to establish a common central currency system, but could not continued to do so, as it lacked proper monetory guidelines and policies.
Those who want to know currency exchange rate history should know that ultimately, in 1867 twenty countries agreed upon a point in International Monetary Conference to introduce for a global currency system. The members decided to practice gold standard as a mode of monetary exchange.
In African subcontinent, a similar experimentation worked out to establish a common monetary exchange policy and the outcome was CFA franc. Some parts of East Africa started practicing a single common currency, that was East African shilling.
In the french colonies of west and central Africa practiced franc currency under the authority of CFA ( French African Community), which ensures the conversion to French franc.
The CFA (stands for French African Community in French) franc has been in use in the French frac.