Original currency: positional currency and original currency are relative concepts. For example, in China, it is stipulated that RMB is the bookkeeping base currency, which means that all financial statements of domestic enterprises should be reflected in RMB, which is convenient for macro analysis such as statistics and planning, and also convenient for horizontal and vertical comparison.
The original currency is relative to the bookkeeping base currency, such as a German foreign-funded enterprise whose boss is German. Of course, the financial statements of enterprises should be understood by German bosses. General financial statements are reported to the boss in accordance with the German mark. At this time, the Deutsche Mark was regarded as the original currency of China.
Under normal circumstances, when domestic foreign-funded enterprises report statistical statements to some domestic government agencies, they must be converted into functional currency statements.
The gold standard refers to the monetary system with gold as the bookkeeping base currency. Its main forms are gold coin standard, gold bar standard and gold exchange standard.
1, gold coin standard system
The gold coin standard system is a typical gold standard system with gold as the monetary metal. Its main features are: gold coins can be freely cast and melted; Tokens and value symbols in circulation (such as paper money) can be freely converted into gold coins; Gold can be imported and exported freely. Between countries that implement the gold standard, the exchange rate is calculated according to the gold content of the two currencies, which is called gold parity.
2. Standard system of gold bars
Gold bar standard refers to the currency system issued by the central bank and prepared by gold bars for the circulation of paper money. The difference between it and the gold coin standard system is that: firstly, the gold coin standard system takes paper money or bank notes as the circulating currency, and no longer casts circulating gold coins, but stipulates that the gold content of paper money or bank notes can be converted into gold; Second, the government is required to reserve gold centrally and allow residents to exchange gold bars when the gold content of their bookkeeping base currency reaches a certain amount.
3. Gold trading standard system
The gold standard refers to the monetary system in which bank notes are used as the circulating currency and gold is indirectly exchanged through foreign exchange. The similarity between the gold exchange standard system and the gold bar standard system is that the gold content of the monetary unit is stipulated. In China, bank notes are circulated, but coins are not circulated. However, it is stipulated that bank notes can be exchanged for foreign exchange and not for gold. China's central bank deposits gold and foreign exchange in another country that implements the gold standard, allows indirect exchange of foreign exchange for gold, and stipulates the legal ratio of domestic currency to that country's currency, thus stabilizing the value of the local currency.
4. Bretton Woods institutions
Governments set exchange rates by linking their currencies to the US dollar, thus indirectly linking their currencies to gold. In this international monetary system arrangement, the dollar is in a key position equal to gold relative to the currencies of other member countries. Therefore, this system is also known as the international monetary system centered on the US dollar.
References:
Baidu encyclopedia entry functional currency