EXPLORING OTHER CURRENCIES

US DOLLARS $

 The US DOLLAR is one of the oldest currencies created.

 THE FIXED PARITY SYSTEM CONUNDRUM
1)Each member country was to set a fixed value (par
value) of its currency in terms of Us dollar or gold.
Minor fluctuations allowed (Adjustable pegs)
2)US $ convertible into gold @ $35 per troy ounce.
COLLAPSE
1)In 1950’s Us balance of payments swung into
deficit .
2)Decrease in confidence in the currency
3)Countries began converting their dollar denominated
assets into gold
4)Financing of the Vietnam War made the situation
worse. Deficit and Inflation followed.
COLLAPSE OF THE FIXED PARITY SYSTEM
BRITISH POUND(£ )

It takes third place in the total reserves of money, the

world has at its disposal.
 Even though decimalization in 1971was a positive step
towards improving pound, The 1976 sterling crisis
was an event which eventually lead to a disastrous fall
in the sterling back then.
The conservative efforts lead to rise in the pound but
that led to the crisis of 1981 and pound again fell.
 SWISS FRANC

 One of the world's strongest eight currencies

on the stock exchanges.
Switzerland and Liechtenstein are now the
only two countries which use the Swiss Franc .
Other countries which used other versions of
the franc gave them up in favour of the new Euro
currency.
EURO
Came into being in 2002
The Euro has fared well on the world stage,
and is one of the eight strongest currencies in
the world, despite being the youngest of all of
them
The making of the EUROMESS
HUGE INFLOWS
HOUSING BOOM

RAPID GROWTH
INFLATION

1)EXPORTS UNCOMPETITIVE
2)UNEMPLOYMENT SOARED
3)DEEP DEFICIT
JAPANESE YEN

The Japanese Yen is thought of as being one of the

strongest currencies in the world.
It doesn't actually have as much strength as some
people think .
The only country to use the Yen as its currency is
Japan itself, which is one of the reasons why the Yen
is somewhat fragile