Commodity Currencies
Commodity currencies are currencies that are linked to the prices of commodities such as oil, gold, and other natural resources. These currencies are typically issued by countries that are heavily dependent on the export of commodities, and their value is often determined by the price of the commodities they are linked to. For example, the Canadian dollar is linked to the price of oil, and the Australian dollar is linked to the price of gold.
History of Commodity Currencies
The concept of commodity currencies has been around since the 19th century, when countries began to link their currencies to the prices of commodities. This was done in order to stabilize their currencies and to protect their economies from the volatility of the global markets. In the early 20th century, countries such as Canada, Australia, and New Zealand began to link their currencies to the prices of commodities, and this practice has continued to this day.
Comparison of Commodity Currencies
| Currency | Commodity |
|---|---|
| Canadian Dollar | Oil |
| Australian Dollar | Gold |
| New Zealand Dollar | Dairy Products |
Summary
Commodity currencies are currencies that are linked to the prices of commodities such as oil, gold, and other natural resources. These currencies are typically issued by countries that are heavily dependent on the export of commodities, and their value is often determined by the price of the commodities they are linked to. For more information about commodity currencies, you can visit websites such as Investopedia, Bloomberg, and the World Bank.
See Also
- Floating Exchange Rate
- Fixed Exchange Rate
- Currency Peg
- Currency Swap
- Currency Futures
- Currency Options
- Currency Arbitrage
- Currency Risk
- Currency Crisis
- Currency Intervention
