Bei ni makadirio ya jamii kuhusu thamani ya bidhaa, na ujira ni makadirio ya jamii kuhusu thamani ya huduma. Fedha ndiyo njia ambayo makadirio haya yanaonyeshwa. Ni njia inayotuwezesha kupima bidhaa na huduma mbalimbali na kuzirejesha kwenye msingi mmoja wa pamoja, hivyo kurahisisha mchakato wa kulinganisha bidhaa mbalimbali na huduma mbalimbali kwa kuzirejesha kwenye kipimo kimoja cha jumla kinachotumika kama kiwango cha jumla. Bei hulipwa kwa bidhaa, na ujira hulipwa kwa wafanyakazi kwa msingi wa kipimo hiki.

The price is the society’s estimate of the value of goods and the wage is the society’s estimate of the value of services. Money is the medium by which this estimate is expressed. It is the medium which enables us to measure various goods and services and refer them to one common basis, thus facilitating the process of making a comparison between various goods and between various services by referring them to one general unit which serves as the general standard. Prices are paid for goods and wages are paid for workers on the basis of this unit.

Thamani ya fedha hukadiriwa kwa uwezo wake wa kununua, yaani kwa kiasi cha bidhaa au huduma ambazo mtu anaweza kupata kwa fedha hiyo. Kwa hiyo, kifaa ambacho jamii hutumia kukadiria thamani ya bidhaa na huduma lazima kiwe na uwezo wa kununua ili kistahili kuitwa fedha, yaani nguvu ambayo kwayo kila mtu anaweza kupata bidhaa na huduma.

The value of money is estimated by its purchasing power i.e. by how much a person could acquire with it in terms of goods or services. Therefore, the medium by which the society estimates the value of goods and services must have a purchasing power in order to qualify as money i.e. a power with which any person could acquire goods and services.

Njia hii ya kubadilishana lazima iwe na nguvu ya ndani, au itegemee nguvu ya ndani, yaani iwe yenyewe na thamani inayotambuliwa na umma, ili ichukuliwe kuwa fedha. Hata hivyo, kwa uhalisia, utoaji wa fedha hutofautiana miongoni mwa nchi mbalimbali za dunia. Baadhi ya nchi zimeifanya fedha yao kuwa na nguvu ya ndani au kuitegemea nguvu ya ndani, ilhali nyingine zimeifanya fedha yao kuwa fedha ya makubaliano (isiyobadilishwa kuwa thamani nyingine), yaani zimekubaliana kuitumia njia fulani kama fedha na kuipa uwezo wa kununua bidhaa.

This medium must originally have an intrinsic power, or be dependent on an intrinsic power i.e. it should itself have a value recognised by the public, in order to be considered as money. However, in reality the issuing of money differs among the various countries of the world. Some countries have made their money an intrinsic power or dependent on an intrinsic power, while others have made their money a conventional money (inconvertible) i.e. they have agreed upon a medium to be considered as money and they gave it a buying power.

Nchi zinapotoa fedha, zinaweza kufuata either mfumo wa dhahabu na fedha, au mfumo wa noti za karatasi zisizobadilishwa kuwa dhahabu. Kuhusu nchi zinazofuata mfumo wa dhahabu na fedha, zinatumia njia mbili za utoaji: njia ya fedha za chuma, yaani ama kiwango kimoja au viwili vya chuma, au njia ya noti za karatasi. Njia ya fedha za chuma ni ile ambapo sarafu za dhahabu na fedha hutolewa kwa kuunda vipande vya dhahabu au fedha ili viwakilishe thamani mbalimbali, lakini kwa kuzingatia kitengo kimoja cha fedha ambacho thamani zote za pesa na bidhaa zingerejelewa. Kila kipande kingetengenezwa kwa kuzingatia kitengo hiki, na vipande hivyo vingezunguka kama sarafu ya nchi. Njia ya noti za karatasi inayotumika katika nchi zinazofuata mfumo wa dhahabu na fedha inamaanisha kwamba nchi inatumia noti za karatasi, yaani sarafu ya karatasi inayoweza kubadilishwa kuwa dhahabu na fedha inapohitajika. Mfumo huu unaweza kuendeshwa kwa njia mbili. Njia ya kwanza ni pale nchi inapofanya noti za karatasi ziwakilishe kiasi fulani cha dhahabu na fedha kilichowekwa mahali maalum kama pesa au bullion. Katika hali hii, kiasi hicho kingekuwa na thamani ya chuma sawa na thamani ya kawaida ambayo noti ya karatasi inashikilia, na noti hizo zingeweza kubadilishwa inapohitajika. Hii inajulikana kama noti ya karatasi ya thamani halisi (intrinsic paper money). Kuhusu njia ya pili, hii hutumika pale nchi inapoamua kwamba noti ya karatasi iwakilishe hati ambayo mtiaji saini anaahidi kumlipa mshikaji kiasi fulani cha pesa inapohitajika. Katika kesi hii, noti ya karatasi haiwakilishi kiasi cha dhahabu na fedha chenye thamani ya chuma sawa na thamani ya kawaida iliyotolewa; hata hivyo, nyumba inayotoa noti, iwe ni benki au hazina ya serikali, itatunza kiasi cha dhahabu na fedha kidogo kuliko thamani yake ya kawaida, kwa mfano, theluthi tatu za thamani, theluthi mbili, theluthi moja, robo au asilimia nyingine yoyote ya thamani ya kawaida. Kwa mfano, benki au hazina ya Serikali ingetoa noti za karatasi zenye thamani ya dinari milioni 500 na kuweka katika salama zake dhahabu na fedha zenye thamani ya dinari milioni 200 tu. Aina hii ya noti za karatasi inajulikana kama noti za karatasi za kuaminiwa (fiduciary paper money). Akiba za madini haya ya thamani zinajulikana kama akiba ya dhahabu au dhamana ya dhahabu. Kwa vyovyote vile, nchi inayotoa fedha chini ya masharti haya kwa kweli inakuwa inatumia kiwango cha dhahabu.

When issuing money, countries may either adopt the gold and silver standard, or the non-exchangeable paper money. As for the countries which operate the gold and silver standard, they follow two methods of issuing: the metallic money method, i.e. either the single/dual metallic standard or the paper money method. The metallic method is where gold and silver coins are issued by minting pieces of gold or silver to represent various values, but based on one monetary unit to which all the various values of money and goods would be referred. Each piece would be coined to be based on this unit, and these pieces would be circulated as the country’s currency. The paper method used in the countries which operate the gold and silver standard means simply that a country would use paper money i.e. paper currency that can be exchanged to gold and silver upon demand. Two methods can be used in operating such a standard; the first method is when a country makes the paper money represent a certain amount of gold and silver deposited in a specific place as money or bullion. In this case, this amount would have a metallic value equal to the nominal value which the paper money holds and the notes can be exchanged on demand. This is known as intrinsic paper money. As for the second way, this would be used when a country decides that the paper money should represent a document in which the undersigned, promises to pay the bearer on demand a certain amount of money. This paper money would not in this case represent the amount of gold and silver which has a metallic value equal to the issued nominal value; the issuing house, be it a bank or a government treasury, would however maintain a lesser amount of gold and silver than its nominal value, for example, three-quarters of the value, two thirds, one third, a quarter or any other percentage of the nominal value. For instance, a bank or the State’s treasury would issue paper money worth 500 million Dinars and maintain in its safes 200 million Dinars worth of gold and silver only. This type of paper money is known as fiduciary paper money. The metallic reserves are known as gold reserves or gold cover. In any case, a country which issues money under these conditions would in fact be operating the gold standard.

Hii inaonyesha kwamba vyombo vya kati (media) vyenye nguvu ya asili, yaani dhahabu na fedha, vyenyewe ni fedha na ndivyo msingi ambao fedha inajengwa juu yake. Hata hivyo, kila nchi huchagua mbinu yake mahsusi, umbo, uzito, mint (kiwanda cha kutengeneza sarafu), n.k., ili iweze kuitofautisha na fedha nyingine. Nchi pia inaweza kukubaliana juu ya sarafu ya karatasi yenye nguvu ya asili inayotokana na dhahabu na fedha, ama ikizunguka ndani ya nchi na nje ya nchi, au ikitumika tu katika kubadilishana fedha za kigeni. Nchi pia inaweza kukubaliana juu ya fedha ya karatasi ya kifiduciary (fiduciary paper money), inayoungwa mkono na dhahabu kwa kiasi fulani cha thamani yake ya kawaida, yaani kwamba ingekuwa na akiba ya dhahabu chini ya thamani yake kwa dhahabu. Karatasi hizi zingekuwa na umbo na chapa mahsusi ili ziwe fedha ya nchi inayoitoa na ili zitofautishwe na fedha nyingine.

This demonstrates that the media which possess an intrinsic power i.e. gold and silver, are in themselves money and are the basis upon which money is based. However each country chooses her own specific method, shape, weight, mint, etc. so that she can distinguish it from other money. A country may also agree on an intrinsic paper currency based on gold and silver either circulating in the country and abroad, or used only in foreign exchanges. A country could also agree upon fiduciary paper money, backed by gold for a certain amount of its nominal value i.e. it would have a gold reserve less than its value in gold. These papers would have a specific shape and print so that they become the currency of the issuing country and so that they are distinguished from other currencies.

Kwa upande wa nchi zinazofuata mfumo wa sarafu ya karatasi isiyobadilishwa kuwa dhahabu, zinatoa noti ambazo haziwezi kubadilishwa kuwa dhahabu, fedha au madini yoyote ya thamani kwa kiwango kilichowekwa. Kwa hiyo, taasisi inayotoa noti hizi haina wajibu wa kuzibadilisha kuwa dhahabu kwa bei maalum wakati wowote itakapoombwa. Katika nchi kama hizo, dhahabu inachukuliwa kama bidhaa nyingine yoyote ambayo bei yake hubadilika mara kwa mara kulingana na ugavi na mahitaji. Noti hizi hazina akiba ya madini, wala hazibadilishwi kuwa fedha ya madini. Zina thamani ya kisheria tu, hazina nguvu ya asili, wala hazitegemei nguvu ya asili. Zinawakilisha tu kipimo kilichokubaliwa kama njia ya mzunguko wa fedha, na ni sheria inayoipa uwezo wa kuwa njia ya mzunguko, ambayo kwayo mtu anaweza kupata bidhaa na huduma. Nguvu yake inatokana na nguvu ya Dola inayoitoa na inayoitumia kama sarafu yake.

As for the countries who operate a non-exchangeable paper money standard, they issue bills which are not exchangeable to gold or silver or any precious metal with a fixed rate. Therefore, the institution which issues these bills is not liable to exchange these bank notes for gold at a specific price on demand. Gold in such countries is treated just like any other commodity whose price fluctuates from time to time according to supply and demand. These bank notes are not backed by a metallic reserve, nor are they exchangeable to metallic money. They only hold a legal value and do not possess an intrinsic power, nor do they depend on an intrinsic power. They merely represent a unit that has been agreed upon as a means of circulation, and it is the law that gives it the power to become a means of circulation, with which a person may acquire goods and services. Its power is derived from the power of the State who issues it and who uses it as her currency.

Kwa kuwa fedha inatolewa kwa njia zilizotajwa hapo juu, nchi yoyote inaweza kwa hiyo kukubaliana juu ya kitu kinachoonyesha makadirio ya jamii ya bidhaa na huduma, mradi kitu hicho kina nguvu ya kununua ambayo kwayo mtu anaweza kupata bidhaa na huduma kutoka nchi hiyo. Kwa hiyo, nchi yoyote inaweza kutoa sarafu yenye sifa maalum na tofauti, inayoonyesha makadirio ya jamii ya thamani ya bidhaa na huduma, yaani fedha ambayo kwayo mtu yeyote anaweza kupata bidhaa na huduma katika nchi inayotoa, kulingana na thamani aliyopewa fedha hiyo. Ni nchi inayotoa sarafu ndiyo inayolazimisha nchi nyingine kuitambua sarafu yake ili nchi hizo ziweze kupata kutoka kwake bidhaa na huduma.

Since money is issued in the above mentioned ways, any country could therefore agree upon something which expresses the society’s estimate of goods and services, as long as this thing has purchasing power with which a person could acquire goods and services from that country. Therefore, any country could issue a currency that has a fixed and a distinguished quality, which expresses the society’s estimation of the value of goods and services i.e. a money with which any person could acquire goods and services in the issuing country, according to the value given to that money. It is the issuing country which forces other countries to recognise her currency so that these countries could acquire from her goods and services.

Nchi haingehitaji kutegemea Shirika la Fedha la Kimataifa, Benki ya Dunia, benki kuu au taasisi nyingine yoyote. Nguvu ya sarafu katika kupata bidhaa na huduma ingetosha kuifanya kuwa fedha, ama yenyewe, kama dhahabu na fedha, au kwa kutegemea dhahabu na fedha, kwa mfano noti ya karatasi ya asili inayowakilisha thamani yake ya kawaida kwa dhahabu na fedha, au kwa kushikilia kiasi fulani cha dhahabu na fedha kama akiba, kama ilivyo kwa noti ya karatasi ya kuaminiwa. Hili pia linaweza kutokana na sarafu hiyo kuwa zabuni halali yenye kukubalika kwa lazima, ambayo humwezesha mtu kupata kwa kutumia bidhaa na huduma, kama vile noti ya karatasi isiyobadilishwa, yaani banknoti.

A country would not need to depend on the International Monetary Fund, the World Bank, a central bank or any other institution. The strength of the unit in obtaining goods and services would be sufficient to turn it into a currency either by itself, such as gold and silver, or by its dependence on gold and silver e.g. intrinsic paper money which represents its nominal value in gold and silver, or through having a certain amount of gold and silver held in reserve, as is the case with fiduciary paper money. This may also be due to it being a legal tender with enforced acceptability which allows a person to acquire with it goods and services, such as the non-exchangeable paper money i.e. the banknote.

Nchi zilizokuwepo zamani zilifanya biashara kwa dhahabu na fedha. Kwa namna hiyo, kila nchi ilikubaliana juu ya alama maalum isiyobadilika kwa dhahabu na fedha yake, ili kutofautisha fedha yake na fedha za nchi nyingine. Kisha kila nchi ilitoa, sambamba na dhahabu na fedha, noti za karatasi zenye alama maalum isiyobadilika ya kuzitambulisha. Baadaye nchi zilikubaliana kutoa noti za karatasi huku zikiendelea kushikilia akiba ya dhahabu na fedha. Hivyo kulikuwa na aina tatu za fedha duniani: fedha za chuma zilizotengenezwa kwa dhahabu na fedha, noti za karatasi zenye thamani ya ndani, na noti zisizobadilishwa.

Countries in the past used to deal in gold and silver, whereby each country would agree upon a specific fixed character for her gold and silver in order to distinguish her money from other countries’ money. Each country would then issue alongside the gold and silver paper money with a fixed distinguished character. Then the country would agree upon the issuing of paper money while maintaining gold and silver reserves. There was therefore three types of money in the world: metallic money made of gold and silver, intrinsic paper money and non-exchangeable banknotes.

Tangu mwisho wa Vita vya Pili vya Dunia hadi mwaka 1971, dunia nzima ilitumia aina mbili kuu za fedha: fedha ya chuma na fedha ya karatasi yenye aina zake tatu. Hata hivyo, tangu mwaka 1971 dunia nzima ilianza kutumia kwa pekee mfumo wa fedha ya karatasi isiyobadilishwa, yaani zabuni halali yenye kukubalika kwa lazima, hadi Rais wa Marekani Nixon alipotangaza Tamko la Bretton Woods kuwa batili, na hivyo kuvunja uhusiano kati ya dola na dhahabu.

Since the end of the Second World War and until 1971, the whole world used to operate two main types of money, the metallic and the paper money with its three types. However, since 1971 the whole world began operating exclusively the non-exchangeable paper money standard i.e. the legal tender with enforced acceptability, until the U.S. president Nixon declared the Bretton Woods Declaration null and void, thus severing the link between the dollar and gold.