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British banks were also expanding overseas, London was the world centre for insurance and commodity and British capital was the leading source of foren investment around the world; sterling soon became the standard currency used for international commercial transactions.[5] For example, suppose an American company sells electrical equipment to a buyer in France for one million euros.

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By the 1860s, most industrialised countries had followed the lead of the United Kingdom and put their currency on to the gold standard.

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The reserve currency is commonly used in international transactions and often considered a hard currency or safe-haven currency.The equipment is to be delivered 90 days before the payment is made.

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A reserve currency (or anchor currency) is a currency that is held in snificant quantities by governments and institutions as part of their foren exchange reserves.


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