Basket of currencies for the middle east region - Research Proposal Example

What one wanted to exchange was not what the other party required or rather wanted. This brought the issue of conflict of interest and disagreement as to whether the transaction could take place. The challenges of bulkiness of the products as some of the products or goods exchanged were so bulky as to facilitate the transaction. The challenge of breaking the goods or dividing the goods into proportions. Some people wanted a half of the portion. Those looking for meat some desired just a piece of meat, but under the regime it was difficult to divide a whole cow that was being sold into a piece of meat.

(Rabinovich 43) Under the prevailing challenges a common form of tool inform of currency had to be established. This was meant to facilitate the transaction process. The common form of currency had to be uniformly agreed upon. The respective parties had to unanimously agree on a common means of currency. These was supposed to be stable in its value as the value of the currency chosen was not supposed to depreciate, it was supposed to be generally acceptable as for it to be a common currency it was supposed to be accepted unanimously, It was supposed to be durable and not depreciate easily or loose value easily it was supposed to be easily divisible and subdivided into various denominations and finally it was supposed to be very portable.

Portability of the currency necessitated that it was easily carried around. Various countries on these criteria and analysis have established some form of currency. They all have a certain currency that meets the mentioned characteristics and is unique to them. This is a reality that has resulted to the diverse bundle of currencies that exists all over the world. The bundle of currency is as a result of the various different currencies from the many countries of the world. (Poghosyan, 09) Countries have evolved the aspect of exports and imports.