Foreign Exchange prices 1913-1941 #2: The money Upheavals the the Interwar PeriodApril 6, 2014

Last week, we started to look in ~ the background of money values in the 1913-1941 period. I’m quiet not certain this will be worthwhile, however the initial results were fairly interesting.

You are watching: Value of french franc in 1930

March 30, 2014: foreign Exchange rates 1913-1941: simply Looking at the Data

France:The french franc to be another significant currency of the time, v what one might call a “leadership role” in currency affairs. In other words, other countries would reaction to or imitate what France to be doing. So, let’s take a look.


This mirrors the number of U.S. Cents per french franc. The franc lost a lot of value throughout WWI and soon afterwards, far too much to enable the franc’s value to it is in raised ago to its prewar parity, together was the case in the U.S. And Britain. It was repegged to yellow in late 1926, in ~ a devalued rate. The franc to be devalued in 1936 — fairly late, adhering to Britain in 1931 and the U.S. In 1933 — and as we watch it never really stabilized again, however continued to lose value into WWII.



I stated previously the Belgium’s background mirrored France’s, therefore here’s the worth of the Belgian franc/belga vs. The French franc. Remember, the belga money was introduced when the Belgian franc was repegged to gold, likewise in 1926 along with France. However, the belga was worth 5 prior Belgian francs, for this reason that increase in worth is really just a redenomination. It appears that the belga’s gold value after 1926 (taking into account the 5:1 redenomination) was much less than the French franc’s yellow value, however, as it was worth a small less than 4 French francs — a sort of devaluation you can say.

Belgium devalued in April 1935, no doubt setting the political criterion for France to perform the very same a year later. However, the Belgian franc maintained its worth (vs. Gold) ~ the 1935 devaluation, when the French franc sank into the depths.

British India:


India to be British in those days. Ns think that silver coins were in widespread use in landscape India in those days, as was the case in China as well. However, the brother overlords likewise maintained a rupee money which, not surprisingly, was attached to the brothers pound. Thus, it was devalued in 1931 along with the brothers pound, and also again in 1939. This to be actually relatively significant, due to the fact that India produced a lot of commodity products for civilization export, significantly cotton and also cotton cloth.


The Bulgarian lev preserved its worth vs. Gold throughout the 1930s. Resources controls to be imposed beginning in April 1932. Ns seem come remember the there was hyperinflation in Bulgaria shortly after WWI, i m sorry is perhaps why ours data here begins in 1921.


Not surprisingly, Canada’s background amounts to a combination of British and also U.S. Influences. The Canadian dollar shed some value throughout WWI, and also was returned to its front gold conventional parity in 1925, along with the brother pound. The Canadian dollar to be devalued in 1931, along with the brother pound. However, the Canadian dollar was stabilized vs. The U.S. Disagreement (and thus gold) afterwards, more so than the pound, i m sorry was much more of a floating currency. Another devaluation in 1939 mirrors that of Britain.

Beginning in march 1940, Canada lists an “official” rate and a “free” rate. The 2 are about the same, however. The free rate is shown.


The Chilean peso shed a the majority of value throughout WWI, like the French franc, and also was repegged to yellow in late 1924. It to be devalued in might 1932, after the brother devaluation however not coinciding v it. However, after that, the peso was efficiently repegged to gold, even maintaining this if the U.S. Dollar was devalued in 1933. An additional devaluation in January 1935 returned the peso/dollar price to about its 1932 level. Apparently, Chile preferred the “competitive advantage” from the 1932 devaluation vs. The USD, and also wanted come return that after the U.S.’s 1933 devaluation. It’s a typical pattern of the time. Funding controls to be imposed beginning in April 1933. From November 1937, over there is one “official” price (shown) and additionally an “export” rate, which is around 22% reduced in value.

Adding it all up, the peso lost a many value from whereby it to be at the start of WWI (not shown here).


Chinese mainly used a metallic currency during many of this time, which had been the case due to the fact that the please of record money in the Ming dynasty. In various other words, they supplied silver coins, and also any other kind of silver- on metallic weight. The tael was a common measure in China, back the Mexican silver- dollar was also popular. There was a file yuan as well, which has a 1:1 parity through the Mexican silver- dollar coin.

Thus, the variability the the yuan/dollar rate basically mirrors the variability of silver vs. Gold throughout this time. However, together we have the right to see, the document yuan was attached to yellow in 1935, transitioning to a gold basis indigenous a silver basis. This didn’t last long, as the file yuan was devalued in 1938, together it was published to fulfill the demands of military spending in the face of the Japanese invasion.

Now you deserve to see why Chinese people preferred metal coins. As soon as you room using a steel coinage-based currency, you will naturally tend towards silver rather of gold, because gold is of as well high a worth for usage in coinage exclusively, there is no some type of lower-denomination adjunct. This to be fine because that a lengthy time, and formed the communication of “bimetallic” systems approximately the world. Silver and also gold were basically 2 versions that the same thing, due to the fact that their sector value remained in a trusted range. That is why I take into consideration bimetallic systems to be “gold traditional systems,” which might confuse some human being who don’t know this history. Civilization at the time considered them to it is in gold-based systems too. However, beginning in the 1870s, this ruptured because that the first time in history, which drove most of the human being to monometallic gold-based systems. Chinese and Indians stuck with silver coins.

See more: Two Angles That Have The Same Measure Are Called ? Building Blocks

For part reason, I uncover this strange satisfying. It is nice to obtain an idea of what to be going on throughout that time.