Major world currencies and the Central Bank of each
In this chapter we will try to know some important currencies in the world include:
· United States Dollar (USD)
· Euro (EUR)
· British Pound Sterling (GBP)
· Swiss Franc (CHF)
· Euro Currency / Euro Dollar
Fig table major world currencies and their respective codes
U.S. Dollar or U.S. Dollar (USD)
U.S. Dollar became the world's major currencies since the end of World War II to the present. This is understandable since at that time the economy in the European countries devastated by war. although the U.S. participated in the war (both in Europe against Nazi Germany and in the Pacific against Japan). With an international conference on digelarnya exchange rate system which was held in Bretton Woods, New Hampshire United States in 1944, which designates the start of Fixed Rate System Exchance increasingly confirmed the role of the U.S. Dollar as the world's major currencies.
In the late 1960s and early 1970s Fixed Rate System Exchance as its implications on the U.S. Dollar is not back up a certain number of gold again. But because the size of the U.S. economy makes the currency will remain a world currency today. Travel time also shows the eyes of U.S. Dollar as the currency is stable enough even in a crisis though.
The Federal Reserve (Central Bank of the United States)
The federal reserve is better known as the "Fed" or "The Fed" is the United States central bank. The federal reserve was established in 1913 through the federal reserve act (legislation Central Bank of the United States).
The federal reserve adopt decentralized systems where there is a council called the federal reserve board which is located in washington and the twelve federal reserve banks in several states (state) in charge of a certain area has been set. Federal reserve Bank of Central Bank Governors chaired.
In 1923 established a committee called the open market investment committee (abbreviated OMIC) in charge of coordinating the operations of the 12 federal reserve banks. OMIC-member central bank governors of the federal reserve bank in New York, Philadhelpia, Cleveland, Chicago and Boston.
In the year 1930 OMIC replaced by the open market policy conference (OMPC). OMPC-member board of governors of the 12 federal reserve banks.
In 1935 legislation applies a new bank that changed the composition of the federal reserve system into its present form. At that moment also changed its name to OMPC the Federal Open Market Committee (FOMC). The name was used until now.
All members of the board of governors appointed by the president with the approval of the U.S. Congress. This makes the federal reserve have the independent system.
Euro (Currency Joint European Countries)
Euro currency was first launched in 1999 as the European single currency which replaces the 11 (eleven) European currency, namely:
• Frank Belgium / Belgian Franc (BEF)
· Mark German / Deutche Mark (DEM)
· Peseta Spanish / Espanol pesetas (ESP)
• Frank French / Frenc franc (FRF
· Punch Irish / Irish Punch (IEP)
· Lira Italy / Italian Lira (ITL)
• Frank Luxembourg / Luxembourg franc (LUF)
· Dutch guilder / Nenderland guilders (NLG)
· Shilling Austria / Austrian Shilling (ATS)
· Portugal Escudo / Portugesse Escudo (PTE)
· Mark Finnish / Finlandian Mark (FIM)
Euro was launched as an effort of European countries to create a single world currency that will rival the U.S. dollar.
At the time of the Euro currency was first launched at the same fixed currency exchange rate of each member state will adopt the euro to the euro currency. The exchange rate is fixed meaning will not change until all member states currencies converted into euros.
The European Central Bank (European Central Bank)
European Central Bank (ECB) was established on June 1, 1998 in the framework of the process of launching the European single currency is the Euro. European Central Bank was established to determine the monetary policy of countries that adopted the euro currency. To carry out the policy established the European System of Central Banks (ESCB). The agency who will manage the system of international payments, foreign exchange reserves of each member state, the circulation of money, etc..
Great Britain Pound Sterling / British Pound Sterling (GBP)
Before the second world war this currency is the world's major currencies. That countries in the world use it to conduct financial transactions and international trade. After the second world war his position was taken over by the U.S. Dollar. Because European countries including the UK destroyed by war. At that time the currency is GBP major currencies after the third world and Euro U.S. Dollar.
This currency most widely traded on the London exchange markets but are not traded in teralalu many American and Asian markets.
This currency Currency Petro also called for based on past price fluctuation, the movement is very sensitive to GBP movement of oil prices. In the forex market practice GBP Cable got the nickname taken from the telex machine used to make transactions.
Bank of England (Central Bank of Britain)
Bank of England is the central bank is considered less independent. This is because the policy set by the Bank of England may be replaced by the British government.
The best achievement of the bank of England in these days is to raise the exchange rate Pound Sterling. In the year 1991 in the UK inflation rate reached double digits, causing Pounds Sterling exchange rate down. But the effort is amazing the Bank of England can lift a pound sterling to a better value.
Japanese Yen / Japanese Yen (JPY)
Japanese Yen is one of the stronger currencies in the world and one of the currency most widely traded on world foreign exchange markets. Japan is one of the leading industrial countries in Asia and has a very strong position in international trade. But because Japan depends on the raw materials must be imported from outside the yen currency fluctuations are influenced by fluctuations in raw material prices and oil in the international market. Later Yen fluctuations related to the fluctuations in the index Nikkei, Japan's stock market index and the real estate market in the country.
Historically, Japan's economy experienced bleak times during the oil embargo of the early 70's. But at the time by the Iraqi takeover of Kuwait menyebkan Gulf war in 1992 did not affect oil prices in the event that the Japanese economy is not too affected. Yen highest recorded in April 1995 to achieve the same rate of 1 dollar to 80 yen. This can be achieved because the United States economic policies that seek to increase exports. With the value of a lower dollar is expected to increase the competitiveness of U.S. exports, compared to the same products made in Japan.
Bank of Japan (Bank of Japan)
Bank of Japan has kewenagan similar to the Fed (U.S. central bank). Only a central bank policy require the approval of the Japanese finance minister first dahulu.walaupun so it does not cause dependence trend of the Japanese government (through the minister of finance) to take advantage of the central bank to do unpopular policies such as printing money to finance the government budget that will ultimately lead to inflation.
Swiss Franc / Swiss Franc (CHF)
is a unique country. The uniqueness lies in the impartiality of the country in a conflict that has plagued the world. In the second world war, swiss is the only continental European country outside the axis of the German-Italian-Japanese who left the state free of the shaft (shaft countries, especially Germany does not have a master plan Switzerland). Switzerland is one European country other than the Soviet Union and the United Kingdom that is not controlled by the state at the time axis.
Banking in Switzerland is famous for customer service and confidentiality in negar atersebut. Banking in Switzerland is keeping secret the identity nasabahmereka. This inimenarik people from various countries to keep their funds in the country. Currently the Swiss economy is very closely related to the German economy.
Swiss Franc is the currency relatively stable. This is the impact of the impartiality of the country. Although its market share more ketch; stronger currencies than any other world but the Swiss franc is one currency that is liquid in the international forex market.
Bank of Switzerland (Swiss Central Bank)
Swiss Central Bank official is located in the city of Berne while the "Governing Board" is located in the Swiss city of Zurich. Switzerland's central bank has two branches with a "cash reserve" and the four branches without the "cash reserve". Tasks Swiss Central Bank, among others:
· Maintaining price stability (inflation rate)
· Providing an efficient payment system
· Maintaining the availability of money (money supply)
· To invest foreign exchange reserves have
· Maintaining financial system stability is
- Currency (4)