CURRENCY

Feb 14 2020

Money and Finance: World Currencies #dollar #forex



#money currency in the world

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Money and Finance

All around the world different countries use different types of money. Many countries have their own money. This money is backed by the government and is usually called “legal tender.” Legal tender is money that must be accepted as a form of payment in that country.

Major World Currencies

Although there are many different types of money throughout the world, there are some major world currencies that are accepted or used in several different regions and countries. We describe some of these below:

  • British Pound Sterling- The British pound is the official currency of the United Kingdom. It is currently the fourth most traded currency in the world. Prior to 1944, it was considered the world reference for currency.
  • U.S. Dollar – The U.S. dollar is the official currency of the United States. It is the most used currency in international transactions. There are other countries (i.e. Ecuador and Panama) who use the U.S. dollar as their official currency.
  • European Euro – The Euro is the official currency of the European Union. Many of the countries in the European Union use the Euro as their official currency (not all of them do such as Denmark and the United Kingdom). The Euro passed the U.S. dollar in total cash in circulation in 2006.
  • Japanese Yen – The Japanese Yen is the official currency of Japan. It is the third most traded currency in the world.

Exchange Rates

When you go to another country, you will usually want to get some cash of the local money. You can do this by exchanging your money for some of that country’s money. This is done by using exchange rates. For example, if you were in Europe and wanted to trade U.S. dollars for 100 Euros. If the exchange rate was 1 Euro equals 1.3 U.S. dollars then you would have to give them 130 U.S. dollars to get 100 Euro.

You can look on the internet to see the latest exchange rates between different world currencies. However, exchange rates will vary slightly depending on where you go. Different banks or institutions may have different fees and rates for making the exchange.

The Gold Standard

How do you know money is really worth anything? Well, countries used to hold gold that represented all the money they had printed. Each coin or bill they printed was backed by gold in a big vault somewhere. Today, countries no longer do this. They usually do have some gold called “gold reserves” that help to back the money, but it’s really the economy and government who are backing the value of the money.

List of World Currencies

Here is a list of some of the currencies used throughout the world.

  • Australia – dollar
  • Brazil – real
  • Canada – dollar
  • Chile – peso
  • China – yuan or renminbi
  • Czech Republic – koruna
  • Denmark – krone
  • France – euro
  • Germany – euro
  • Greece – euro
  • Hong Kong – dollar
  • Hungary – forint
  • India – rupee
  • Indonesia – rupiah
  • Israel – new shekel
  • Italy – euro
  • Japan – Yen
  • Malaysia – ringgit
  • Mexico – peso
  • Netherlands – euro
  • New Zealand – dollar
  • Norway – krone
  • Pakistan – rupee
  • Philippines – peso
  • Poland – zloty
  • Russia – ruble
  • Saudi Arabia – riyal
  • Singapore – dollar
  • South Africa – rand
  • South Korea – won
  • Spain – euro
  • Sweden – krona
  • Switzerland – franc
  • Taiwan – dollar
  • Turkey – lira
  • United Kingdom – pound sterling
  • United States – dollar

Fun Facts About World Money

  • Some countries like Canada and Australia are now using plastic, rather than paper, to make their bills.
  • The portrait of Queen Elizabeth II has been on the money of 33 different countries.
  • The first living person to be featured on a coin was Julius Caesar in 44 B.C.
  • The first euro coins and bills were introduced in 2002.
  • Stores in some countries may accept multiple currencies. For example, you may find a store in the tourist section of Denmark that accepts both Danish krone and euro.

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