For much of history mostly gold and silver coins were the money used, otherwise known as commodity money. Commodity money has been used in many forms not just gold or silver. Throughout history anything of value could be used as commodity money. These items include but are not limited to the following: rice, shells, alcohol, salt, and candy. The use of commodity money for transactions is similar to bartering but not exactly.
Today we use fiat money or fiat currency in most areas. What distinguishes fiat money from commodity money is that the commodity itself does not have an actual tangible value. Fiat money refers to notes and coins from banks which are given a face value. In the U.S. this would be the Federal Reserve System. The fiat money is known as legal tender and is accepted to pay for both public and private debts. It’s actually against the law to refuse the legal tender of your country if someone is trying to pay you for goods or services provided by you. This is good news concerning travel currency conversion because if you have the correct tender, you won’t be refused.
Around the world we use different types of currency. Each country is different regarding which currency they’ll accept. Since the value of each country’s currency differs as well, it’s important to know the value of a certain type of money for deciding to do a travel currency conversion.
Now that you have a short, summed up history on currency, you’ll need to be aware that travel currency conversion is a must when traveling to other countries. You’ll need to have your money converted into the currency needed to purchase goods in another country. There are many ways to have your money converted and a lot of different advice is floating around all over the internet. As you read about money conversion, you’ll find that it can be pretty confusing and contradictory when comparing different offers. There are plenty of companies that are ready and willing to help you and get you the best deals. At FairFx, we like to keep it simple, and we have a range of easy to use prepaid cards for spending money abroad. Have a look and see our great exchange rates.
Friday 05 March 2010, 09:12am
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