Foreign paper currency could always be redeemed for gold at par at home

Evidence

In 1931 Britain abandoned the gold standard regime. In force between 1870 and World War I, this monetary system was resurrected in the second half of the 1920s. It was based on gold: the various currencies (sterling, dollar, franc, etc.) were defined as a fixed weight of gold and were freely convertible into this international means of payment. Through this mechanism, the currencies were pegged to each other according to fixed metal parities and therefore their values remained stable. In order to guarantee the convertibility of their respective currencies, the central banks had to limit the issuance of money to the gold reserves available to them. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 64 (#corroborates, via linked claim)

Categorization

• XREF: connects to: Gold standard currencies had fixed parities and central banks limited issuance to gold reserves — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 64

Broader Connections

• Gold standard currencies had fixed parities and central banks limited issuance to gold reserves #corroborates (0.85) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 64