Evolution of International Finance in the Context of International Financial Settlements
Evolution of International Finance in the Context of International Financial Settlements

Author(s): Iliyan Sarandaliev
Subject(s): Politics / Political Sciences, Politics, History, Economy, Supranational / Global Economy, Economic history, Economic policy, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: bank history; financial history; financial institutions; evolution of the financial markets; Islamic finance
Summary/Abstract: The evolution of international financial settlements spans many eras and civilizations. The origin of institutional financial relations dates back to the era of Ancient Rome. Medieval Italian city-states such as Genoa and Venice developed sophisticated financial instruments, including bills of exchange and banking networks, which facilitated international trade. The Ottoman Empire systematically began to use a number of Islamic financial instruments that allowed its inhabitants to get rich by complying with the religious norms. In England and France of the XVII-XIX centuries, significant changes took place in the financial sphere. England, thanks to the creation of the Bank of England and the development of national debt, has become the center of international finance. In France, financial reforms such as the creation of the Banque de France contributed to the stabilization of the post-revolutionary economy and the development of international settlements. These historical examples demonstrate how various civilizations and States have contributed to the development of international financial instruments. They laid the foundation for a modern global financial system, ensuring its stability and flexibility. Understanding these processes makes it possible to better assess current financial mechanisms and anticipate their further development.

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