A money changer is a person or organization whose business is the exchange of

coin A coin is a small, flat (usually depending on the country or value), round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order t ...

s or

currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general def ...

of one country for that of another. This trade was a predecessor of modern

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

ing. The advent of paper money in the mid-17th century and the development of modern banking and floating exchange rates in the 20th century allowed a

foreign exchange market The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspec ...

to develop. This provided a way for banks and other specialist financial companies such as bureaux de change and forex brokers to easily change one country's money for another, and with the added confidence of transparency.

History

In ancient times in

Jerusalem Jerusalem (; he, יְרוּשָׁלַיִם ; ar, القُدس ) (combining the Biblical and common usage Arabic names); grc, Ἱερουσαλήμ/Ἰεροσόλυμα, Hierousalḗm/Hierosóluma; hy, Երուսաղեմ, Erusałēm. i ...

, pilgrims visiting the Jewish Temple on

Jewish Holy Days Jewish holidays, also known as Jewish festivals or ''Yamim Tovim'' ( he, ימים טובים, , Good Days, Grammatical number, or singular , in Romanization of Hebrew, transliterated Hebrew language, Hebrew []), are holidays observed in Juda ...

would change some of their money from the standard Ancient Greek coinage, Greek and Roman currency for Shekel, Jewish and Tyrian shekel, Tyrian money, the latter two the only currencies accepted as payments inside the Temple.Sanders, E. P. The historical figure of Jesus. Penguin, 1993. Bart D. Ehrman, Ehrman, Bart D.

Jesus, Interrupted ''Jesus, Interrupted: Revealing the Hidden Contradictions in the Bible (And Why We Don't Know About Them)'' is a book by Bart D. Ehrman, a New Testament scholar at University of North Carolina at Chapel Hill. This work includes a narrative of Eh ...

, HarperCollins, 2009. With this Temple money the pilgrim would purchase a sacrificial animal, usually a pigeon or a lamb, in preparation for the following day's events. During the

Middle Ages In the history of Europe, the Middle Ages or medieval period lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history. It began with the fall of the Western Roman Empire a ...

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...

, many cities and towns issued their own coins, often carrying the face of a ruler, such as the regional baron or bishop. When outsiders, especially traveling merchants, visited towns for a market fair, it became necessary to exchange foreign coins to local ones at local money changers. Money changers would assess a foreign coin for its type, wear and tear, and

validity Validity or Valid may refer to: Science/mathematics/statistics: * Validity (logic), a property of a logical argument * Scientific: ** Internal validity, the validity of causal inferences within scientific studies, usually based on experiments ** ...

, then accept it as deposit, recording its value in local

. The merchant could then withdraw the money in local currency to conduct trade or, more likely, keep it deposited: the money changer would act as a clearing facility. As the size and operations of money changers grew they began to provide a lending facility, by adding the lending-fee to the foreign exchange rates. Later the

Knights Templar , colors = White mantle with a red cross , colors_label = Attire , march = , mascot = Two knights riding a single horse , equipment ...

provided this service to pilgrims traveling to and from the

Holy Land The Holy Land; Arabic: or is an area roughly located between the Mediterranean Sea and the Eastern Bank of the Jordan River, traditionally synonymous both with the biblical Land of Israel and with the region of Palestine. The term "Holy ...

.Nicholson, Helen (2001). The Knights Templar: A New History. p. 4, Stroud: Sutton. .

References

{{Authority control Banking occupations Banking technology Financial services occupations

History

See also

References