4/6/2023 0 Comments Ww2 belgium knotesThe Belga was tied to the British pound at a rate of 35 belgas (175 francs) = 1 pound and was thus put on a gold standard of 1 Belga = 209.211 mg fine gold. In 1926, Belgium, as well as France, experienced depreciation and an abrupt collapse of confidence, leading to the introduction of a new gold currency for international transactions, the Belga worth 5 francs, and the country's withdrawal from the monetary union, which ceased to exist at the end of the year. In the 1870s the gold value was made the fixed standard, a situation which was to continue until 1914. In 1865, Belgium, France, Switzerland and Italy created the Latin Monetary Union (to be joined by Greece in 1868): each would possess a national currency unit (franc, lira, drachma) worth 4.5 g of silver or 290.322 mg of fine gold, all freely exchangeable at a rate of 1:1. Belgium was the first country to introduce coins made of cupronickel in 1860. Luxembourg used both French and Belgian francs until it issued its own Luxembourgish franc in 1854. Following independence from the Kingdom of the Netherlands, the new Kingdom of Belgium abolished the gulden in 1832 in favor of the Belgian franc, which was equivalent to the French franc. Its equivalence of 1 franc = 0.4725 gulden (or 9.52 g silver per exchange gulden, with the gulden currency abolished) doomed the rollout of the higher-valued Dutch guilder, since 20 francs can purchase 9.45 silver guilders which can be melted down to recover 90.84 g fine silver worth 20.19 francs. The French franc of 4.5 g silver arrived in Belgium following its occupation during the Napoleonic Wars.
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