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Coins could be counterfeited, but the existence of standard coins also created a new unit of account , which helped lead to banking. In economics, a local currency is a currency not backed by a national government, and intended to trade only in a small area. List of historical currencies Barter. This page was last edited on 18 December , at In premodern China , the need for credit and for a medium of exchange that was less physically cumbersome than large numbers of copper coins led to the introduction of paper money , i. In Africa, many forms of value store have been used, including beads, ingots, ivory , various forms of weapons, livestock, the manilla currency , and ochre and other earth oxides. By the late Bronze Age , however, a series of treaties had established safe passage for merchants around the Eastern Mediterranean, spreading from Minoan Crete and Mycenae in the northwest to Elam and Bahrain in the southeast.

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Retrieved 22 March An exchange rate is the price at which two currencies can be exchanged against each other. Unsourced material may be challenged and removed. List of historical currencies Barter. Metals were mined, weighed, and stamped into coins. Denomination is a proper description of a currency amount, usually for coins or banknotes. However, the collapse of the Near Eastern trading system pointed to a flaw.

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Retrieved August 28, The resulting currency and credit scarcity left island residents with few options other than to create a local currency. Economic theory Political economy Applied economics. Monetary authorities have varying degrees of autonomy from the governments that create them. In premodern China , the need for credit and for a medium of exchange that was less physically cumbersome than large numbers of copper coins led to the introduction of paper money , i. At that time, both silver and gold were considered legal tender , and accepted by governments for taxes. It was only the recovery of Phoenician trade in the 10th and 9th centuries BC that led to a return to prosperity, and the appearance of real coinage, possibly first in Anatolia with Croesus of Lydia and subsequently with the Greeks and Persians.

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Description: In a currency, there is usually a main unit base , and a subunit that is a fraction of the main unit. This article needs additional citations for verification. Historical Materialism. Mathematical Intelligencer. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. An example of this is the Argentinian economic crisis of in which IOUs issued by local governments quickly took on some of the characteristics of local currencies.
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