April 10, Rio de Janeiro, Brazil, Royal Bank of Braganza Mint.
“Your Majesty, these are the currency union dollars that we, the Royal Bank of Braganza, are about to issue using the latest European technology.
We strive to use it to replace the existing Mires 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 our new national flower, the lotus.
As for 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 Third Kingdom of Portugal; 10 yuan is the portrait of the Second Kingdom of Portugal The head of João I, the founder; 5 yuan, the head of Alfonso I, the founder of the First Kingdom of Portugal; 2 yuan, Pelayo, the founder of the Kingdom of Asturias; 1 yuan, Suehuiga Hermeric, founder of the Kingdom of Lyria. "
Tangning was very interested and carefully watched the new Brazilian currency of 100 yuan, 50 yuan, 20 yuan, 10 yuan, 5 yuan, 2 yuan, 1 yuan banknotes, as well as 1 yuan, 5 jiao, 2 jiao, 1 jiao 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 two famous banknotes of Pelayo, the founder of the Kingdom of Asturias, and Hermeric, the founder of the Kingdom of Galilea, Suebi. The portrait of the 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 are not concealed. Brazil’s new set of currency is advanced in anti-counterfeiting and quite exquisite.
The Brazilian currency launched this time, called the United Dollar, was manufactured by the Royal Bank of Braganza and was used to replace the Brazilian currency mires, which had been manufactured since 1833.
Brazil's old currency, mires, started in 1833. The currency system is 1 mires equal to 1,000 reis. The value of the old currency, due to economic turmoil, is maintained between 0.8-0.3 grams of pure gold.
At this time, most currencies around the world used the gold standard and were linked to gold (Zhongguo and other regions 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 = 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 Lira (Italian) = 0.2903 grams of pure gold
1 yen (Japanese) = 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: 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 British 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 could 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, Britain and the British pound were both world leaders.
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 British were able to maintain a high currency value not only because they had always implemented a high currency value, but also because they were the first to develop industry, and also because they had a lot of gold reserves and vast colonies. They occupied the largest market in the world.
The United States can follow closely behind, and it 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 Japan's 0.75 or Russia's 0.77.
If Brazil, an industrial body like Brazil, wants to develop, it must remain in line with the mainstream of the world. Implementing a high currency value 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 directly block the marketization of industry.
Those idiots in the Republic of Brazil were deceived, short-sighted, and pursued profits. The currency value has been rising all the way, which directly collapsed the industrialization during the Pedro II period and brought the country into the deep pit of the agricultural economic park.
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 reforms, 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 Germany, an inspiring example. 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 directly letting the Kingdom of Brazil unceremoniously learn from it and use it for her own use.
Write a book
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 on a large scale.
Under Tang Ning's guidance, the Kingdom of Brazil directly kicked private capital out of the banking industry, state-owned the banks, closed all private exchanges in Brazil, and established three unified official exchanges in Rio de Janeiro, Pernambuco, and Sao Paulo...
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 kept Brazil's currency value 0.05 lower than Germany's 0.35.
In the Kingdom of Brazil, the gold standard currency rate is actually very stable.
If the United Kingdom and the United States do not make a mistake and a major economic crisis occurs, causing harm to the world, Brazil will generally not be affected, and the currency value will not be turbulent.
What South America is most in need of 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. The Brazilian currency value can be easily maintained at 0.3 as long as you don't act evil.
