A brief history of world currencies: Commodities that define a civilisation

Sponsored by Exness

Currencies have existed for thousands of years and they will continue to exert an influence upon our culture well into the foreseeable future. PHOTO | SHUTTERSTOCK

The Great Depression: just after World War I, the world faced one of the biggest economic crises in its history, which jeopardized the fragile economies of the belligerent nations. In the US, the money supply fell over ⅓ of the pre-crisis levels. The Wall Street Crash of 1929 was the catalyst for the crisis. In the United States, the stock market crash of October 1929 marked the beginning of the Great Depression. Following the crash, the American economy contracted sharply, and by 1933, the Gross Domestic Product had fallen nearly 30 percent from its 1929 level. In the UK, the British pound was devalued by over 20 percent.
The hyperinflation associated with Weimar Germany: After the fall of the German Empire in 1918, the Weimar Republic was established. However, the new Republic faced immense challenges on multiple fronts, including political instability and economic difficulties. Burdened with massive war debts and reparations, the country quickly fell into a hyperinflation crisis. In 1914, a dollar was worth 4.9 German marks. By late 1923, in the midst of hyperinflation, the exchange rate had soared to 4,210,500,000,000 German marks.
The 1998 Russian Financial Crisis: Also known as the Ruble crisis, it was triggered by a combination of factors including low commodity prices, a high fiscal deficit, and a fixed exchange rate. The government's decision to devalue the ruble on August 17, 1998, led to a 35 percent drop in its value against the US dollar within a week. Inflation skyrocketed, reaching an annual rate of 84 percent in 1998, up from 11 percent in 1997. The stock market also suffered, with the RTS stock index falling over 80 percent by the end of the year.

🪫 Your Subscription Ends Soon!

A brief history of world currencies: Commodities that define a civilisation

PAYE Tax Calculator

Latest

1.9m stop sacco savings as take-home pay drops

Lamu locals sue over displacement ahead of refinery launch

Cane farmers earnings hit Sh33bn as deliveries surge 52.3pc

Investor presses CMA for Mumias freeze answers

In the headlines

1.9m stop sacco savings as take-home pay drops

Lamu locals sue over displacement ahead of refinery launch

Nyota overshoots youth cash payout target by Sh2.6bn

Tuju relief as Court agrees to hear appeal over Sh4.5bn loan row

🪫 Your Subscription Ends Soon!

PAYE Tax Calculator

Get it First!

PRIME 1.9m stop sacco savings as take-home pay drops

PRIME Lamu locals sue over displacement ahead of refinery launch

PRIME Cane farmers earnings hit Sh33bn as deliveries surge 52.3pc

PRIME Investor presses CMA for Mumias freeze answers

PRIME 1.9m stop sacco savings as take-home pay drops

PRIME Lamu locals sue over displacement ahead of refinery launch

PRIME Nyota overshoots youth cash payout target by Sh2.6bn

PRIME Tuju relief as Court agrees to hear appeal over Sh4.5bn loan row

1.9m stop sacco savings as take-home pay drops

Lamu locals sue over displacement ahead of refinery launch

Cane farmers earnings hit Sh33bn as deliveries surge 52.3pc

Investor presses CMA for Mumias freeze answers

1.9m stop sacco savings as take-home pay drops

Lamu locals sue over displacement ahead of refinery launch

Nyota overshoots youth cash payout target by Sh2.6bn

Tuju relief as Court agrees to hear appeal over Sh4.5bn loan row