On November 3, 1935, the Ministry of Finance of the Republic of China issued an announcement announcing the implementation of the fiat currency system nationwide. The announcement pointed out: "Since the world economic panic in recent years, important countries have changed their monetary policies and are not allowed to circulate coins. Our country uses silver as its currency. The sharp movement in the price of silver has been greatly affected. The phenomenon of domestic deflation is particularly significant. As a result of the industrial and commercial adjustments, all industries are sluggish, and capital flows out in a steady stream, the balance of payments is greatly unfavorable, the national economy is declining day by day, and all kinds of undesirable conditions have arisen one after another. "If effective measures are not taken at that time, there will be a risk that the domestic cash bank will be completely drained, and this is obvious to the Chinese people." "On October 15 of the previous year, the Ministry of Finance introduced a tax on the export of silver and a balanced tax to stop the spillover of resources, preserve the lifeblood of the country's economy, and save the emergency crisis. Although the results have been focused on for a while, it is not a fundamental way to save them. "Recently, the domestic currency has tightened, people are panicking, and the market is even more depressed. In an effort to save itself and revive the economy, the government must preserve the currency reserves, which are the lifeblood of the country, in order to achieve permanent monetary and financial stability. With reference to the precedents of various countries in recent times, the measures are hereby prescribed and will be implemented on the same day. At that time, the Chinese government lacked enough gold or silver to determine the gold content of the fiat currency, so the government planned to collect silver and gold from the Chinese treasury and the private sector, and sell them in the New York and London markets in exchange for foreign exchange as a reserve to ensure the issuance of fiat currency, and use foreign exchange as the basis point for determining the value of fiat currency. On 5 November, the Central Bank announced the exchange rate of fiat currency against the pound: 1 fiat currency = 1 shilling 2.5 pence (based on the average of foreign exchange rates from 1930 to 1934). From this day on, the foreign exchange rate is published on a daily basis, and the three banks mentioned above assume the responsibility of stabilizing the exchange rate in the market. This provision effectively marked the entry of the Nationalist Government into the Sterling bloc and the closer relationship between the Chinese economy and the British economy.

The U.S. government is very unhappy with China's entry into the Sterling bloc. Before the Nationalist Government implemented the fiat currency reform, the United States had demanded a fixed exchange rate between the fiat currency and the US dollar on the condition of purchasing 100 million ounces of silver from China, but the Nationalist Government did not accept it. As a result, on December 9 of the same year, the United States stopped buying silver in the London market, and the price of silver in the international market fell accordingly, so that if the Nationalist government sold silver at the market price, China would suffer huge losses. Tongguò's unilateral plan to sell silver in exchange for fiat reserves has been thwarted.

Forced by reality, the Nationalist Government once again made contact with the US Government. In 1936, Chen Guangbu, general manager of the Shanghai Commercial and Savings Bank, Guo Bingwen, director of the International Trade Bureau of the Ministry of Industry, and Gu Yiqun, manager of the Shanghai Zhongfu Bank, visited the United States and discussed currency issues with US Treasury Secretary Morganson. The two sides signed the U.S.-China Silver Agreement in May. Under the agreement, the U.S. government buys 50 million ounces of silver from China at a price of 50 cents per ounce; The fiat currency is pegged to the US dollar, 100 fiat currency = 30 US dollars; In order to ensure that the exchange rates of the currencies of Britain and the United States do not rise or fall beyond the range limit and to prevent the emergence of triangular arbitrage, China has expanded the range of foreign exchange bid-ask spreads. The agreement enabled the Nationalist Government to regain the support of the United States in monetary reform and maintain the stability of the external value of the fiat currency. In fact, the National Government implemented an adjustable exchange rate system. After the implementation of the fiat currency policy, the external value of fiat currency was pegged to the British pound and the US dollar. The Central Bank, Bank of China and Bank of Communications buy and sell foreign exchange without restrictions, with a sell price of 14.625p and a buy price of 14.375p. In September 1936, the Nationalist Government widened the bid-ask spread of the exchange rate as needed, selling at 14.75 pence and buying at 14.25 pence, with the three banks still in unlimited supply of foreign exchange to keep the exchange rate stable. Subsequently, the external value of fiat currency gradually declined. After the outbreak of the War of Resistance Against Japanese Aggression, in order to reduce the need for foreign exchange and prevent the evasion of funds, the Nationalist Government implemented the method of stabilizing the financial system and restricting depositors from withdrawing deposits. During this period, the foreign exchange price of fiat currency was gradually lowered. In March 1938, in order to prevent the pseudo-organization from exchanging foreign currency with legal tender and arbitraging foreign exchange, the method of requesting verification for the purchase of foreign exchange was implemented and foreign exchange management during the war began. On the basis of the continuous reform of the main currency, the Nationalist Government also unified the standard of the auxiliary currency, and promulgated the auxiliary currency regulations on January 11, 1936, completing the last step of this round of reform. At this point, the Nationalist Government's monetary modernization reform came to an end.

In fact, due to the war, fiat currency. Ocean. Gold, British pounds, US dollars and other currencies are too large, taking fiat currency as an example, on the eve of the Anti-Japanese War in 1937, the total amount of fiat currency issued was only more than 1.4 billion yuan, and on the eve of Japan's surrender, the amount of fiat currency issued has reached 500 billion yuan. By April 1947, the issuance had increased to more than 16 trillion yuan. In 1948, the issuance of legal tender reached more than 660 trillion yuan, equal to 470,000 times before the War of Resistance Against Japanese Aggression, and prices rose by 34.92 million times, and the legal tender completely collapsed.

The only one who is stable is the big winner in the end, the United States. At the outbreak of World War I in 914, the gold standard was dissolved as countries stopped importing and exporting gold. In the later stages of the gold standard, the US dollar contained 1.50466 grams. On 31 January 1934, the gold content of one dollar was set at 13.714 grains (0.888671 grams). The official price of gold rose from $20.67 to $35 an ounce. By 1934, when the dollar depreciated, the U.S. government gradually withdrew the pre-1922 editions of various bills. The depreciated dollar cannot be cashed, and only foreign central banks can exchange gold for gold from the United States at official prices. On December 18, 1946, after World War II, the International Monetary Fund officially announced that the gold content of the US dollar was 0.88867 grams. Basically nothing has changed.

In contrast, the British pound, which has been the most important international means of payment and reserve currency in the capitalist world since the beginning of the 20th century, has been in decline after the First World War, and has gradually been replaced by the US dollar. At the outbreak of World War II, Britain imposed strict exchange controls, fixing the exchange rate of the British pound at $4.03 per pound sterling. On July 15, 1947, the United Kingdom declared the British pound to be freely convertible, and due to the rapid loss of foreign exchange reserves, foreign exchange controls were reinstated in August of the same year.

In September 1949, Britain announced a 30.5% depreciation of the pound sterling, depreciating the pound to $2.80 against the dollar, and on November 18, 1967, the pound depreciated again, falling to $2.40 against the dollar, and the gold content of the pound was also reduced to 2.13281 grams.

It can be said that although the entire World War II finance was more or less affected by various countries, Japan was the only country that suffered such a severe collapse as the currency of the victorious country......

In order to prevent currency confusion and guide zhì everyone does not understand, in the future price transactions are based on the US dollar...... It has to be said that the strength of the financial empire is the most important guarantee for the strength of the United States