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It originated in England (1821) and was the monetary system that was used more or less constantly from Waterloo until the First World War. The banknotes could be exchanged for gold, and the gold in turn into banknotes. The daily task of a central bank was to facilitate this exchange.
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It began due to the need to establish a series of mechanisms that allow the development of international operations in a healthier way, known as the era of the gold standard. -
The First World War meant the de facto abandonment of the gold standard, since warlike countries banned exports. -
A conference was held in Genoa, attended by 34 countries, mostly European, with the aim of rebuilding the International Monetary System -
The economic crisis forced many countries to impose exchange controls and they abandoned the gold standard.
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The financial system, known as Bretton Woods, is born. The International Monetary Fund was created, creating a new economic order and financial and commercial rules for development.
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The International Monetary Fund did not constitute a source of international liquidity, being the deficits of the balance of payments of the United States. what produced the most important contribution to international reserves
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The system breaks down and a system of floating or flexible exchange rates begins.
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The figure of paper money is created to replace the gold and dollar standards, to support the parity value of the different currencies.
It becomes highly offered and demanded in the financial markets