money
Money is a medium that acts as an intermediary and an alternative to metals such as gold. Through it, business operations are conducted between a group of people; As it is characterized by its primary and influential role in the global economic system, and also helps in the continuation of the exchange, sale and purchase of products and their production; As money is a benefit to societies, and contributes to promoting the growth and development of civilizations, it is also possible to store money and save it in banks, or convert it into real estate, or buy precious metals with it.
China is the first country to use money
China is the first country to use money made of metal, and it was later able to move from relying on metal currencies only to currencies made of paper (paper money); Where the Chinese used paper bonds during the reign of the Tang dynasty, and these banknotes were classified into exchange notes and credit bonds, and China has been using and relying on them for more than 500 years, and in the seventeenth century AD, the use of money moved to the continent of Europe, and the spread of money needed in all countries and regions the world to nearly two centuries or a century.
China currency
The yuan currency is the national currency of China, and it is called in the local dialect the name of the renminbi, and this name is also considered an official name for the Chinese currency. Where one dollar equals approximately 6,25 Chinese yuan.
Read also:What is the currency of Brazil?China's economy
China contains many natural resources; However, its impact on the international economic system was limited until the end of the twentieth century AD. As China strengthened its participation in the global economy sector at the end of the seventies, and became one of the influential countries in international trade; which led to an increase in the growth and development of its gross domestic product; As individual companies in the private sector have become dependent on the Chinese economy in exporting and importing products made in Chinese territory.
China's economy is one of the developed economic systems. Where he was keen to reduce dependence on agriculture only, and was interested in directing attention towards the industrial sector, so that technological and light industries have become one of the most important industrial and economic priorities in China, and support for economic growth and development is another priority that the Chinese government seeks to provide support for, as for the productive sector in China offers many products; Agricultural production provides rice, of which China is one of the largest global producers. It also produces and exports cotton, soybeans, corn, tobacco, and wheat. China also produces many global mineral and industrial products, and it is also considered an important producer of oil and coal.
There are many banking and financial institutions in China, the most important of which are the Ministry of Finance and the People’s Bank of China, which became in the year 1950 AD a substitute for the Central Bank of China. ; It contributes to the issuance of the yuan (Renminbi), controls its trading operations, follows up expenditures and accounts for receipts and disbursements, and has the responsibility for following up on foreign commercial operations.
Read also:What is the currency of the Democratic Republic of Laos?Money history
Money is classified among the important human inventions that people used to reach useful solutions to financial and economic problems, specifically in trade operations and the sale of various products. Therefore, it is considered one of the documents and monuments associated with many human peoples and nations.
Many forms of money have appeared throughout history. Where the name money was given to things of value such as precious stones and metals, and during the reign of Qarun (Croesius) a coin was minted that relied on the use of discs imprinted in the metal, and it is placed on an anvil and a template on which the drawing that will be printed on the currency is engraved, and later this method spread in making money when The Greeks, and arrived with the passage of time to India and Persia, and money spread in Egypt about 4000 years before Christ, and then the Babylonians used an advanced system for dealing with money, and it later moved to both the Romans and the Greeks; Which led to the spread of currencies greatly among the peoples of the world; Because of its ease of handling, fragmentation, and storage, and not being subject to any damage.
Types of money
Throughout history, many types of money have been used in various monetary and commercial exchanges. Money witnessed a development with the development of economic activities and businesses, and the following is information about the most important types of money used by man:
- commodity money: It is the first type of money, and it relied on the use of all commodities that people know; In order to work as an acceptable mediator in monetary exchange, many types of commodities of value were used, such as cattle in the Greeks, elephants in Ceylon, and wheat in Egypt.
- Coins: It is the use of many types of metals; Until it works like money, such as bronze, lead, nickel, copper, and iron, but it did not work with the passage of time; Because of the deterioration of its value, which made it lose the properties of money, the most important of which is the stability of its value.
- Credit money: It is the type widely spread in modern financial and monetary systems, and there is no link between its commercial value and its nominal value. As its monetary value is much higher than the value of the materials that were used in its manufacture.
