At that time , the value of an item to be aligned with other so-called barter goods . Because a lot of the limitations of the barter system , then eventually encourage the creation of currencies instead of the barter system . With the money , the goods can be assessed with nominal price . At his age , some countries that produce goods still use the barter because not all countries have the same currency with value , until finally found metals especially gold and silver . The money that is made of gold and silver be valued in accordance with their respective items and is applicable in many countries . Barter system was ended and replaced with exchange legal tender in the form of the value of money . Trading is done between people from Africa , Asia and eventually to the whole world .
The money was originally a coin created from metals of choice. Until the Middle Ages , before the first world war , introduced a paper -based currency . Most banks agreed on kovertibilitas money with gold . However , the gold exchange standard has weaknesses . As a trading tool , sometimes gold deposits is reduced because the purpose of importation from abroad . As a result, the amount of money in circulation will be reduced , interest rates rose and economic activity slowed to the point of recession .
In the end , the higher commodity prices . In the collapsed state , the government finally began to buy gold to back the paper money as collateral . The result may be lowered interest rates , the money value traded has a good rate again .
The weakness of this system is the large gold reserves are depleted to support the bill . So that various attempts were made to buy gold in large quantities with the consequences of cutting the budget . In anticipation of the government then tried to choose another way to make it in the form of exchange . Where the currency rate movements are no longer using the gold supply , but by demand and supply in the foreign exchange market .
In 1931 forex finally introduced into the financial system. From the year 1931 to 1973, the Forex market has gone through a series of changes. These changes greatly affected the global economy. Because money is transacted large enough and only a few designated government agencies, not much in the form of speculation in the sense want to benefit as much as possible. But more towards the protection of values.
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