April 10, Rio de Janeiro, Brazil, Royal Bank of Braganza Mint.
"Your Majesty, these are the currency union dollars that our Royal Bank of Braganza will soon issue using the latest European technology.
We strive to use it to replace the Mires currently circulating in the market within one year."
Finance Minister Henry laid out a complete set of currencies and showed them carefully to His Majesty Pedro III for inspection.
"Your Majesty, in accordance with your request, the obverse of the coin is dominated by your portrait, and the reverse is the lotus, the national flower determined by our vote.
In the production of banknotes, according to your requirements, the front of our banknotes is themed on the famous historical kings of Portugal and Brazil, and the reverse is themed on the famous natural and cultural landscapes of Portugal and Brazil.
100 yuan is the portrait of Your Majesty the Restorer; 50 yuan is the portrait of former King Pedro II; 20 yuan is the portrait of João IV, the founder of the Fifth Kingdom of Portugal; 10 yuan is the portrait of the Fourth Kingdom of Portugal
The head of João I, the founder; 5 yuan, the head of Alfonso I, the founder of the third Kingdom of Portugal; 2 yuan, Pelayo, the founder of the second Kingdom of Asturias; 1 yuan, the first
Hermeric, founder of the Suebi Kingdom of Galilea."
Tangning was very interested and carefully watched the 100 yuan, 50 yuan, 20 yuan, 10 yuan, 5 yuan, 2 yuan, 1 yuan banknotes of Brazil's newly issued currency, as well as 1 yuan, 50 cents, 20 cents, 1 dime, and 5 cents.
, 2 cents, 1 cent coins.
This time in the currency design, the bank inscription on the coin: Royal Bank of Braganza, did not include Brazil. Tangning did this so that it could be used in Portugal in the future.
To be honest, these banknotes are quite well made. If you can find faults, they are the names of Pelayo, the founder of the Kingdom of Asturias, and Hermeric, the founder of the Kingdom of Galilea, Suebi.
The avatar of the famous king banknote.
The portraits of these two monarchs are actually fabricated because there are no portraits to corroborate them in the long history.
Except for Tangning and Pedro II, who are based on actual photos, the other monarchs' avatars are all from paintings.
However, the flaws do not hide the flaws. Brazil’s new currency is both advanced in anti-counterfeiting and quite exquisite.
The Brazilian currency launched this time is called the United Dollar, which is manufactured by the Royal Bank of Braganza. It is used to replace the Brazilian currency Mires that has been manufactured since 1833.
Brazil's old currency, mires, started in 1833. The currency system is 1 mires equal to 1,000 reis. Due to the economic turmoil, the value of the old currency has remained between 0.8-0.3 grams of pure gold.
At this time, most of the currencies in the world still used the gold standard, and the currency was linked to gold (Zhongguo and other countries used the silver standard, linked to silver), and the exchange rate was generally calculated based on its gold content:
1 pound (UK) = 7.3224 grams of pure gold
1 franc (France) = 0.2903 grams of pure gold
1 US dollar (US) = 1.5046 grams of pure gold
1 ruble (Rupee) = 0.7742 grams of pure gold
1 silver dollar (Zhongguo) = 24.1704 grams of pure silver
= 0.6828 grams of pure gold (calculated using a gold-silver ratio of 1:35.40)
1 mark (Germany) = 0.3584 grams of gold
1 Lire (Italian) = 0.2903 grams of pure gold
1 yen (Japan) = 0.75 grams of pure gold
1 crown (Austro-Hungarian) = 0.3049 grams of pure gold
1 Indian rupee = 10.6922 grams of pure silver
= 0.3020 grams of pure gold (calculated using a gold-silver ratio of 1:35.40)
Among the currencies of this era, only the United Kingdom and the United States have a unit value of more than 1g of pure gold. In the United Kingdom, 1 pound is equal to about 7 grams of pure gold. In most countries in the world, the value of a unit of currency is less than 1g of pure gold. The mainstream currency systems have maintained
Around 0.3g.
One year before World War I, the GDP of several major industrial countries based on purchasing power parity was: the GDP of the British Empire was 79.5 billion, the United States was 51.7 billion, the Russian Empire was 23.2 billion, France was 14.4 billion, and Germany was 23.7 billion. This was based on the international dollar in 1990.
Data derived from units.
At that time, the pound was well-deserved as the leading international currency. Although the gold standard was the main currency at that time, all countries had reserves of many pounds before World War I. For example, one pound at that time could be exchanged for 7.32 grams of pure gold, while one dollar could only be exchanged for 1.5 grams of pure gold.
The country's currency can only be exchanged for less than one gram of pure gold or silver, so many countries hoarded pounds before the war.
However, after the outbreak of World War I, countries began to trade gold again, and trade became more troublesome. But before World War I, the United Kingdom and the pound were the well-deserved leaders in the world.
Tang Ning, after the initial economic consolidation, moved closer to the world and fixed the national currency at the value of 0.3g of pure gold per unit, which can be slightly higher or lower.
The United Kingdom can maintain a high currency value not only because they have always implemented a high currency value, but also because they were the first to develop industry, and because they have a lot of gold reserves and vast colonies. They occupy the largest market in the world.
The reason why the United States can follow closely behind is somewhat similar. The United States has a large population, a large market, and a lot of gold reserves, so it dares to maintain a high currency value.
Tang Ning is still self-aware. He doesn't dare to play with 0.75 like Japan or 0.77 like Russia.
If Brazil, an industrial giant like Brazil, wants to develop, it must maintain a high currency value in line with the mainstream of the world. This is simply asking for death.
If a country wants to develop its industry, it must maintain a low exchange rate value in the early stage to promote industrial exports. If a high currency value is implemented in the early stage, it will be a dead end and directly block the country's industrial marketization.
Those idiots in the Republic of Brazil were deceived, short-sighted, and pursued profits. The currency value rose from time to time, which directly caused the collapse of industrialization during the Pedro II period and led the country into the deep pit of a large agricultural economic park.
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The big farmers made money, but the whole of Brazil suffered.
Brazil's economic reform is a complete set, mainly divided into three parts, tax rate reform, financial reform, and currency reform.
Brazil's tax rate reform is almost based on Germany. Germany has grown and developed through reform, which is very worthy of Brazil's reference.
Therefore, Tang Ning directly crossed the river by touching the Germans.
Tangning was very willing to learn from such an inspiring example of Germany. The Kingdom of Brazil under his rule learned a lot from it, such as industry, education, tax rates, military...
This whole process is equivalent to Tangning seeing what Germany can use and letting the Kingdom of Brazil unceremoniously use it for her own use.
In terms of financial reform, Tang Ning has made innovations, which is very different from the mainstream of the world, and has carried out nationalization.
Under Tang Ning's guidance, the Kingdom of Brazil directly kicked private capital out of the banking industry, and the banks were state-owned; all private exchanges in Brazil were closed, and three unified official exchanges in Rio de Janeiro, Pernambuco, and Sao Paulo were established...
Regarding currency reform, which is a major economic reform related to the country, Tang Ning also crossed the river by touching Germany.
In order to make it easier to develop industry and market, Tang Ning even maintained Brazil's currency value at 0.05 lower than Germany's 0.35.
In the Kingdom of Brazil, the gold standard currency rate is actually very stable.
If nothing happens in the United Kingdom and the United States, and a major economic crisis occurs that harms the world, Brazil will generally not be affected, and its currency value will not be turbulent.
What South America lacks most is gold and silver, and Brazil is a big gold and silver country.
Now, Brazil has annexed Peru and Bolivia, two important gold and silver producing areas, and now has three historically famous gold and silver producing areas. It is easy for the Brazilian currency value to remain at 0.3 as long as you don't act evil.
This chapter has been completed!