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The history of foreign exchange is coupled tightly with the history of money in general. Historically, money was exchangeable, because its value was inherent in the metal of the coins used – gold, silver and copper. Coins are easier to transport than, say a side of beef, and their precious metal content made them a safe store of value. The oldest, still existing currency in the world is the Pound Sterling. The name gives away the origin: One pound used to represent the value of one pound of sterling silver. The Pound was further subdivided into four crowns, or twenty shillings of 12 pennies each. The first mention of the “sterling coin” goes back to Saxon England in 775. This was the first re-introduction of silver coinage in the British Isles after the Roman Empire. The Saxons originally used a shilling. The 12 pennies are based on the Roman 12 denarii per solidus, described in the 8th century. In fact, the pre-decimalization abbreviations for Pounds, Shillings and Pennies in modern England were L, s and d for Librii, Solidii and Denarii. To get a sense for the value of the Pound in early England, historical records from around the 13th century tell us that the remuneration of a knight with horse and armour was about 5 pounds per annum. The construction of a castle (land was granted by the crown, and known as “royal estate”) is estimated to have cost around 50 pounds.

The Bank of England was founded in the 17th century, and paper money started to appear. The global expansion of the British Empire made it necessary to create money that was lighter and more convenient to transport than either gold or silver bullion. This was accomplished by letters of credit or “Bills of Exchange” that could be redeemed against coin locally. Some historians credit the Italians in the 13th century with this invention.

The gold-standard was introduced in 1717 (and suspended 1797-1821- one of the consequences of Napoleonic wars) and in the 19th century the use of paper money became widespread, while silver became token coinage in 1816. In 1914 the bank of England issued 1 and 5 Pound notes, and only two years later the gold sovereign was withdrawn. Silver coinage was debased in 1920 and finally, in 1947, replaced with base metal coins. Banknote conversion into gold for small amounts was ended in 1925 and in 1931, all gold payments ended. The Pound was decimalized in 1971.

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Ray Ban glasses always appear to be in the spotlight. Whether receiving awards of nominations, it¡¯s not often we don¡¯t see ray ban in the news. At times we wonder whether brands such as Ray Ban glasses will continue their dominance. This article is on upcoming competitors. It seems like individuals and the media can¡¯t stop discussing upcoming Ray Ban glasses collections. Last week two respected companies agreed to partner to brand the famous brands Hickey Freeman and Monarchy. The partnership allows the company the chance to make the brands¡¯ frames collections worldwide.

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