Why,When&How made the difference in currency value ofAllCountries.i amAskinHowThisHapenedBefore100Years(apprx)

Question

how all Countries decided this conversion at that time.On what princeple? i am not asking about present,i am asking how it happend at the past 1920 AD (approx). some present Conversions
1EURO = 1.2755$USD
1 USD = 0.784 EUR

1 JPY = 0.0085 USD;1 USD = 117.015 JPY
1 USD = 44.96 INR = 44.96 INR (Indian Rupee)
1 USD = 60.635 PKR (Pakistan Rupee).......etc.

IS there any year in the past so that 1Britain pound=1INR(INDIAN rupee)or 1USD=1INR

Answer 1

Exchange rates were determined by the flow of gold between countries. Each country would set the value of their currency in terms of gold. When good, services and investment were exchanged, if the net of transactions was not equal to zero, the treasury had to make up the difference in gold transfers. To keep gold on deposit countries would be forced revalue their currencies. The Gold standard was abandon in 1973.

Answer 2

The older i'm getting the greater cliche the adage "understanding is potential" seems. there is all kinds of understanding and a few of that's downright depressing and would not help every person. interior the actual international, wealth has lots greater forex than understanding, no pun meant. a minimum of you recognize what you are able to and can't do with wealth or have a greater useful thought at any fee. yet i've got customary my share of pie interior the sky "existence of the minders" who think of of understanding by using fact the be all end all....and archives is inherently constrained....and regularly what we expect of of as actual is extremely merely a theory approximately existence. in this subject, i'm wager i'm Janis like. On one hand, I hate the way we fee the fabric particularly else interior america of a and choose people in keeping with what they have or don't have. on the different hand, wealth can provide a point of secure practices and convenience that the recommendations in no way will. The recommendations is one huge psychological capture 9 cases out of ten and maximum of what we evaluate understanding is extremely merely prejudice and assumption based. We have already got our minds made up and pass out and seek for the persons and books which will validate those ideals.