The price provided may include profit, fees, costs, charges or other mark ups as determined by us in our sole discretion. We provide all-in pricing for exchange rates. The exchange rate you are offered may be different from, and likely inferior to, the rate paid by us to acquire the underlying currency. Exchange rates offered by other dealers or shown at other sources by us or other dealers (including online sources) may be different from our exchange rates. You acknowledge that exchange rates for retail and commercial transactions, and for transactions effected after regular business hours and on weekends, are different from the exchange rates for large inter-bank transactions effected during the business day, as may be reported in The Wall Street Journal or elsewhere. If we assign an exchange rate to your foreign exchange transaction, that exchange rate will be determined by us in our sole discretion based upon such factors as we determine relevant, including without limitation, market conditions, exchange rates charged by other parties, our desired rate of return, market risk, credit risk and other market, economic and business factors, and is subject to change at any time without notice. If the line is mostly flat but has a bit of wiggle in 1933, that probably means the currency was linked to gold (without the wiggle) during that time.1Exchange rates fluctuate, at times significantly, and you acknowledge and accept all risks that may result from such fluctuations. Note that I am extrapolating the gold value of the peso (and other currencies) by using average US dollar/gold ratios for 1933 and also average foreign exchange rates. In effect, thse forex rate becomes an “official” rate rather than the “free” rate, because the point of capital controls is that foreign exchange isn’t “free” anymore, but rather controlled. Capital controls were imposed after April 1933, through 1941. After that 1933 devaluation, the peso is quite stable vs gold for the remainder of the period, although there is some variation. This was the “competitive devaluation” or “beggar-thy-neighbor devaluation” approach popular during that time period. This led to a devaluation of the peso (“paper peso”) soon afterwards, not only adjusting for the U.S. dollar was devalued in 1933, the forex rate between the gold peso and the dollar rose, which introduced negative trade influences. during the WWI period, which wasn’t really the case.)Īrgentina transitions from a “gold peso” (obviously it wasn’t pegged to gold during this time) to a “paper peso” on December 10, 1933. (Here we are again assuming that the dollar’s value was linked to gold at $20.67/oz. Here’s what it looks like compared to gold. Let’s start by reviewing what was going on with the two major international currencies of that time, the British pound and the U.S. This is slow, laborious work but perhaps I’ll be able to chew through it over time. I’m surprised at how many people have downloaded this, and continue to do so, which indicates continuing interest in what is certainly a very wonky topic. The source is the same: the Federal Reserve’s Banking and Monetary Statistics, which you can get from clicking on the above link. September 30, 2012: Currency Devaluations of the 1930s I find it is often best to start by just looking at what is available, and coming to some basic and obvious conclusions, rather than trying to shoehorn the historical evidence into some preconceived agenda, which is what most other works consist of.Īpril 15, 2012: Foreign Exchange Rates 1914-1941 Although a lot has been said about that time, most of it is alas garbage. It is like a childhood trauma that needs to be dealt with to resolve issues in the present adult. A great many misconceptions today stem from that time. Foreign Exchange Rates, 1913-1941: Just Looking At the DataĪlthough there is plenty going on today to talk about, not to mention my perennially neglected Traditional City stuff, I seem to be getting drawn back again and again to the 1914-1941 period in economic history.
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