In the morning meeting, the Ministry of Foreign Affairs and the Ministry of Foreign Trade gave the agenda of the day on the issue of the unified currency used after the formation of the World Financial Trade Organization.

All morning time will be used to solve this problem, and this problem is also a concern of everyone.

If the empire obliges every member to take out a certain amount of gold as a risk reserve for issuing joint currencies, some small countries may face some big troubles.

The fluctuation of the currency exchange rates of small countries in the foreign exchange market is very common. It can be said that this is a normal phenomenon. There are two reasons for this.

First, if the currency of this country is issued based on national credit, any economic decision or even a change in a stock may drive the currency's performance in the foreign exchange market.

The country is small, the system is not complete, and the economic structure is single. Once the company that dominates the economic field has some operational problems, it may only be a business failure. For example, if the expected profit plan is not completed, it can pull the entire country. The huge fluctuations in the economy of China have affected the performance of the currency in the foreign exchange market.

Moreover, credit currency systems often appear in large countries, and it is difficult for small countries to see them. If you have to ask why, you can only say that small countries have suffered too much interference on national credit and international issues and do not have the ability to resist risks. Therefore, it is not appropriate for smaller countries to adopt a credit system.

The diplomatic developments of neighboring countries, even the slightest diplomatic developments, may cause the people and even the world ’s capital markets to re-evaluate the beliefs of this small country. Even some diplomatic issues are not directed at this small country, and they may cause chain reactions.

Constantly fluctuating exchange rates are definitely not a good thing for a country's financial economy. Disputes and problems are easy to occur in international settlements, so small countries tend to prefer precious metals, such as gold as a risk reserve in accordance with a certain Proportional currency issue.

In the second case, the issuance of currency is based on the precious metal reserves. It is stipulated in strict and accurate numbers how many currencies can be exchanged for one ounce of precious metal. The indirect method is used to determine the currency exchange rate. It seems that this is very easy to do. thing.

Money itself does not have any value, it is just a special commodity, used for small-scale circulation, but they become different when they are related to gold.

Precious metals such as gold are common hard currencies around the world, so the exchange rate comparison of the price of nailed gold can make the currency reduce the sharp fluctuations caused by financial problems.

However, it is not necessarily true. For example, a large country suddenly starts to sell gold for some reason, which will cause the price of gold to fall rapidly.

Another example is the discovery of a huge gold mine in a certain place. Even if the mine is abroad, the world's gold price plummeted. Even small countries with very good development momentum also caused the currency exchange rate to plummet due to the plummeting gold price, and foreign trade suffered serious losses.

However, this situation is obviously much better than the first situation. This world does not find gold mines with huge reserves that can affect the world every day.

Even if it is found, it may not be mined. The buried gold will not be immediately reflected in the financial market before it can be turned into golden briquettes and sent to the bank.

But if the Yaoxing Empire needs everyone to take out a portion of their gold reserves in proportion, it will really suffer for these small countries.

Obviously it is a good thing, but it has become a bad thing. A decrease in gold reserves means that the potential value of the currency is reduced, which will affect export trade.

This is like having a hundred grams of gold at home and issuing a hundred dollars for this risk reserve, and now people have taken fifty grams of gold, which also means that only half of the gold used to fight risk is now left. Then the actual value of the 100 yuan that has been issued is only half.

A piece of money can only be equal to the past fifty minutes. There is no doubt that this is definitely a huge shock to the entire country's economy. The money in people's pockets is suddenly worthless, and civil strife and even civil war may occur in some places.

Most of the morning meeting was discussing whether there is a need to issue a joint currency, and what changes will be brought to member states after the issue of the joint currency.

Don't look at the participants who are not leaders of the country or high-level representatives of the country. At such a crucial moment, one by one, they did not agree with their opinions in accordance with others' heads.

In fact, it is not that these countries do not exist in favor of the issuance of a joint currency. Of course, these people have their own plans.

The prince of the Colt empire agreed with the issuance of the joint currency in order to solve the problem of the domestic financial structure.

They are in a period of transition between feudalism and modern society. Pharaoh wants to push the Colt empire to complete the system transformation quickly and keep up with the pace of the international power Yaoxing Empire, while ensuring that his power is not threatened.

But this is certainly not clear in a few words. In the Colt Empire, people in many regions still used gold coins as important currencies for circulation, and they were not interested in the paper currency issued by the royal family.

This led to the failure of paper money from the early stage of its issuance. It was very bad and inconvenient for the royal family to control the domestic financial order, so that in a fairly feudal country, the status of businessmen was almost overtaking the nobility. ~ lightnovelpub.net ~ This is simply an international joke.

If the establishment and issuance of the combined currency can be promoted, according to the IFTO and international settlement methods, merchants in the Colt Empire must use the combined currency for international trade settlement.

Then the question arises, how can the joint currency be obtained?

Obviously, paper currency is used to obtain it, so how can paper currency be obtained? It is very simple. Exchange it with gold coins!

This can quickly gather a large amount of gold from the people, and at the same time, the currency issuance right controlled by the royal family can bring more power to the royal family in the financial field, which greatly helps Colt's royal family to stabilize its power status.

Most of the other countries that support the issuance of joint currencies have their own ideas and consider them from the standpoint of their own interests.

As for those who do not advocate the issuance of the joint currency, they are basically small countries that do not have the risk of resisting international financial trade. Some people even believe that the issue of the joint currency is most likely a conspiracy of the empire.

Once their domestic gold reserves are insufficient, their national currencies are likely to be gradually eliminated by the combined currency. In the end, the combined currency is not only the international settlement currency, but also their main domestic circulation currency.

In case of any more terrible conspiracy planned by the Yaoxing Empire, it can completely destroy their financial order, destroy their economic construction, and plunder their country's wealth.

After arguing all morning, no result came out. At the end of the lunch break, the Imperial Foreign Minister made a suggestion.

"Given that at present everyone's opinions cannot be completely unified, we can propose another relatively gentle way, using the Imperial Star as the international settlement currency. You can discuss it during lunch break. We will continue to discuss this issue in the afternoon ..."