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exporters. The Dutch guilder emerged as a de facto world currency in the 18th century due to unprecedented domination of trade by the Dutch East India Company. However, the development of the modern concept of a reserve currency took place in the mid nineteenth century, with the introduction of national central banks and treasuries and an increasingly integrated global economy.
By the 1860s, most industrialised countries had followed the lead of the United Kingdom and put their currency on to the gold standard.
At that point the UK was the primary exporter of manufactured goods and services and over 60% of world trade was invoiced in pound sterling.
British banks were also expanding overseas, London was the world centre for insurance and commodity markets and British capital was the leading source of foreign investment around the world; sterling soon became the standard currency used for international commercial transactions. For example, suppose an American company sells electrical equipment to a buyer in France for one million euros.