After the appearance of electronic coins in the course appeared the term “fiat currency”. For the uninitiated, this seems strange and incomprehensible. In fact, it’s so simple. At this time, usually for all money – national currencies of different countries. We will tell you about them in this article.

Basic information

– money used by almost all modern people. Its name comes from the Latin word fiat, which means “trust” in translation. Such money appeared in 1973 after the abolition of the “gold standard”.

is unseaed. It serves as an expression of goods and services produced in the state. Such monetary units also act as commodities on the international foreign exchange market. Their value is not affected by the supply-demand ratio. Fiat currencies are presented in the form of paper banknotes, metal coins and non-cash money.

State. The National Bank of Each country puts into circulation enough currency to ensure the normal functioning of the economy.

The most popular Fiat money in the world as follows:

USD. It is produced by the United States. It is the world’s reserve currency. Eur. Currency of the European Union. Gbp. Pounds. Produced by the UK, which is one of the financial centres in the world. Chf. It is produced by the Swiss Confederation. It is one of the world’s reserve currencies.

These and many other currencies can be bought and sold on the Forex market. On the difference of their stake you can earn a high profit. Transactions are made on currency pairs. They express the value of one currency in another. For example, the EUR/USD exchange rate shows the value of the euro expressed in US dollars.

Currency pair quotes analysis allows you to make predictions about their future value. By doing this job properly, you can consistently earn on Forex trading. To create a valid forecast, you must have a good knowledge of technical and fundamental analysis techniques. The first involves examining currency pair charts.

Fundamental analysis is based on an understanding of global factors influencing the increase or decrease in the value of financial assets. In addition, in order to consistently make money in the international foreign exchange market, you need to mani management skills. Without the quality of capital management, it is impossible to work successfully in the Forex market.

Fiat postage currency appeared for the first time