Isn’t the Fiat money backed by Gold?
I do not know about the US, but the Indian Rupee is backed by Gold.
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Isn’t the Fiat money backed by Gold?
I do not know about the US, but the Indian Rupee is backed by Gold.
Indian Rupee is not backed by gold. It is a fiat currency, meaning it has no intrinsic value other than what is derived from government laws and regulations. As far as i know no currency is backed by gold anywhere in the world. It does not meen the goverments or central banks do not have gold. just that the paper notes cannot be exchanged for gold with them directly as they once did. where the term promisary note came from. you can buy gold with any currency but it is not backed by it how can it be.. there's way more paper money than gold. Plus they can print as much as they like.
think was 1971 when america got rid of the gold standard and seeing as the us dollar is the reserve currency no currency can be exchanged unless into dollars first..So everyone else must use the same system. thats why we have whats going on in the world to save the dollar and stop countires wanting to ditch it as the reserve currency.
Thanks for the explanation.
No problem at all