Bangladesh Bank

n. (Abbr. FX) 1.Transaction of international monetary business, as between governments or businesses of different countries. 2.Negotiable bills drawn in one nation to be paid in another country. Initially, the value of goods was expressed in terms of other goods, i.e. an economy based on barter between individual market participants. The obvious limitations of such a system encouraged establishing more generally authoritative means of exchange at a fairly proto(prenominal) stage in history, to set a common bench mark of value. In different economies, everything from teeth to feathers to pretty stones has served this purpose, but curtly metals, in particular silver and silver, established themselves as an sure means of payment as well as a reliable storage of value. Originally, coins were simply minted from the preferred metal, but in stable political regimes the introduction of a paper constellation of governmental IOUs (I owe you) gained acceptance during the Middle Ages. Such IOUs, a lot introduced more successfully through force than persuasion were the ass of modern currencies. Before serviceman War I, most underlying banks supported their currencies with convertibility to gold.

Although paper money could always be exchange for gold, in reality this did not occur often, fostering the sometimes disastrous notion that there was not necessarily a need for full cover in the central militia of the government. At times, the ballooning supply of paper money without gold cover led to devastating inflation and resulting political instability. To nurture local national interests, foreign exchange controls were increasingly introduced to prevent market forces from punishing monetary irresponsibility. In the latter stages of World War II, the Bretton Woods agreement was reached on the initiative of the the States in July 1944. The Bretton Woods Conference rejected John Maynard Keynes touch for a new world reserve currency in favour of a system built on the US dollar. Other international... If you want to get a full essay, aver it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .