Currencies: the hidden stories of history and politics
Posted: March 19th, 2013 | Author: ctbideas | Filed under: ATW Planning | No Comments »
One of the things I’ve noticed in my research is that a lot of the websites I end up browsing for ideas list prices in the local currency. I’ve had to convert the different currencies to US Dollars so I can get an understanding of how “expensive” something costs in a context I’m familiar with.
The quickest way to do currency conversions is to just type it into a Google search box like “1 USD to VND” and the number pops up on top of the Google search results page. If you don’t like using Google, I also like using Wolfram Alpha’s search site because they’re all about facts and figures. Finally, if you want to use a dedicated currency converter webapp, I like using XE Currency Converter.
While doing some research into the different types of currency (nerd alert!), I became fascinated by all the different names of the currencies. And, falling headlong into the black hole that Wikipedia is, it turns out the name of each currency actually has deep links to a culture’s history.
This may be boring for a large number of you, but if you’re interested, as I was, read on for random currency-related facts on the countries we’re planning on traveling through.
**Please note all currency conversion values are as of February 27th, 2013 (when I first started looking things up).
Vietnam:
20,885.00 Dong (VND) to $1 USD
Vietnam has used the name, Dong, since May 3, 1978. The term originated from the words dong tien ( meaning "money") referring to the Chinese bronze coins used as currency during the dynastic periods of China and Vietnam.
China:
6.23 Renminbi or Yuan (CNY) to $1 USD
The official name is Chinese Yuan, but it is commonly called Renminbi meaning "the people’s currency". The Yuan refers to the base unit of a currency. Other currencies in other countries are also referred in Chinese as Yuan. Yuan means “round” in Chinese. During the Qing Dynasty, the Yuan was a round coin. The People’s Bank of China introduced the first series of Renminbi banknotes in December of 1948 with the latest series (5th) coming out in 1999.
Mongolia
1,384.17 Tugrik or Togrog (MNT) to $1 USD
The word, Togrog, refers to "circle" or "circular object" (like a coin). It was first introduced on December 9, 1925 at a value equal to 1 Soviet Ruble.
Turkey
1.81 Lira (YTL) to $1 USD
The new Lira was introduced on January 1, 2005 in order to revalue the previous Turkish Lira. The term “Lira” originates from the value of a Troy pound of high purity (which in Latin is libra) which was then translated into the local languages who adopted this value of currency. Lira was the translation of libra in Italian. The Venetian lira was one of the currencies in use in Italy and due to the economic power of the Venetian Republic, became a popular currency in the Eastern Mediterranean trade. In the 19th century, the Ottoman Empire, of which Turkey was a part of, officially adopted the currency for themselves. Turkey is one of the few countries who have kept the term Lira for their currency.
Israel
3.73 New Shekel (ILS) to $1 USD
The Israeli new shekel has been in use since January 1, 1986. It was changed in order to contain inflation. At that time, the Israeli Lira, then the old Shekel, had frequent devaluations against the US dollar. The first usage of the word “shekel” is all the way back in Mesopotamia around 3000 BC, possibly referring to a weight of barley. The word "shekel" is based on the verbal root in Hebrew for "weighing or to weigh" (shaqal). Interesting fact: the metal currency is actually minted at the Korea Minting and Security Printing Corporation and the banknotes are produced by Orell Fussli of Zurich, Switzerland, since Israel, itself, has no mint of its own.
Austria & Germany
0.77 Euro (EUR) to $1 USD (or $1.31 USD to 1 Euro)
The name, Euro, was officially adopted on December 16, 1995 and officially introduced to the public on January 1, 1999, entering circulation on January 1, 2002. Esperantist Germain Pirlot, a Belgian and former teacher of French and History, is credited with naming the new currency by sending a letter to then-President of the European Commission, Jacques Santer, suggesting the name "Euro" on August 4, 1995. All circulating coins have a common side showing the denomination or value, and a map in the background. Due to the linguistic plurality of Europe, the Latin alphabet version of euro and Arabic numerals are used on the currency.
Czech Republic
19.50 Koruna (CZK) to $1 USD
The Koruna has been the currency since February 8, 1993 when, together with its Slovak counterpart, replaced the Czechoslovak Koruna at par. The name Koruna originates from the Krone which comes from the Latin corona meaning "crown" (koruna also means “crown” in Czech). The Krone was the official currency of the Austro-Hungarian Empire, of which the area of the Czech Republic was originally part of, from 1892 to the dissolution of the empire in 1918 and had the distinction of being the first modern gold-based currency in the area.
Croatia
5.81 Kuna (HRK) to $1 USD
The Kuna has been the currency in Croatia since May 30, 1994, transitioning from the Croatian Dinar. The Dinar came from the Yugoslav Dinar which is originally from the Serbian Dinar adopted when the Kingdom of Serbs, Croats, and Slovenes changed to Yugoslavia in 1929. See how much history can be had just from figuring out the origins of currency names? The word, "kuna", means "marten" in Croatian. It is based on the medieval use of marten pelts as valuable units of value in trading. Fun fact: during Roman times, taxes were often collected in the then highly valued marten skins. This is very similar to the valuable beaver fur trade in America in the 18th century. Poor animals.
Switzerland
0.93 Franc (CHF) to $1 USD (or $1.07 USD to 1 CHF)
This is the only version of the Franc still issued in Europe and is used as the legal tender of Switzerland, Liechtenstein & the Italian exclave Campione d’Italia. In 1798, the Helvetic Republic introduced a currency called the Franc based on the Berne Thaler (a local Swiss currency) equal to 6 and 3/4 grams pure silver, or 1 and 1/2 French francs. However, the Franc officially became the official monetary unit of Switzerland on May 7, 1850. The name is said to derive from the Latin inscription francium rex (or “King of the Franks”) on early French coins, or from the French word “franc”, meaning "free". It’s historically considered a safe-haven currency with virtually zero inflation and the Swiss banking system is considered to be one of the best & safest in the world. A safe-haven currency is a globally traded currency expected to serve as a reliable and stable store of value.
So, that’s the extent of my research for now. Don’t you feel so much better now that you know how much of a nerd I am?
There’s plenty more interesting details, not just for the currencies listed here, but every other currency used in the world currently. So, if you found this post interesting, I really encourage you to dive in to more of your own research.
Leave a Reply