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Countries and Currencies
Introduction
Currency is an established measure of value in which people use it to purchase commodities and services. It serves as a medium of exchange, a measure of value, and a store of value. There have been different kinds of money in history, unique in their functions and features.
There are nearly 200 countries, and all the countries use different currencies. The popularly most popular currencies are the Dollar, the Euro, the Pound, the Dinar, the Riyal, the Yen, etc.
When traveling from one country to another, it is necessary to make a currency exchange to carry out transactions in that country. The government issues the Currency, also called legal tender. However, the Currency’s value does not remain constant and changes daily. Therefore, the value of a currency is different in different countries.
Importance of Currencies
Currencies are essential to the global economy, and their importance can be summarized in the following points:
- Facilitate international trade and investment, allowing businesses and individuals to transact with foreign countries.
- It affects business growth, inflation, and a country’s trade balance.
- Influence a country’s political power and international position since a strong currency can increase the influence of a nation and vice versa.
- Used by central banks and governments to control inflation, regulate interest rates, and manage monetary policy.
- It serves as a measure of a country’s economic stability and can affect foreign investment decisions.
Why do Countries need Currencies?
Countries need currencies for several key reasons:
- Facilitate Trade and Commerce: The absence of money as a common marketable means makes it impossible for people to avoid trading services directly, which is cumbersome. People can now easily trade by converting these objects into common currency, irrespective of their unique possessions.
- Store of Value: The critical function of currencies is to represent a value store. In this instance, people can put away some wealth for future utilization. It facilitates savings, investment, development, planning, and financial security.
- Unit of Account: They act as a medium through which goods and services can remain valued in one currency. It allows for comparison, pricing, and accounting, which makes economic activities more effective.
- Sovereignty and Economic Control: Countries can control their economies with their currencies. As part of this, it contains the level of money supply, influences inflation and interest rates, and encourages certain areas for economic development.
- International Trade: Many countries, however, may have their currencies, although they can use a shared one in a few countries. It allows a country to be part of the global trading cycle, exchanging one money with another.
- Identity and National Pride: Currencies are essential symbols of the nation that reflect historical, cultural, or other information about the country. The national currency is a source of citizen pride and adds to its importance in the economic sector.
Almost all countries trade with other countries, either within their regions or abroad. But, of course, some countries trade more than others. Generally, in most cases, barter trading is impractical, so money is used in such circumstances. However, governments have different types of currencies or money with varying units of account. Hence, they cannot purchase goods from a foreign country using their native currencies. Certainly, the leading standard solution to this problem is currency exchange.
Indeed, the Currency is essential to a country for the exchange level. Generally, governments use their foreign currency reserves to fix exchange rates to become viable in the export market, improve investor confidence, and remain liquid during a crisis. Foreign exchange reserves are also necessary to offset external debts and finance various sectors of the economy.
Different Countries and their Currencies
Country and Currency | Currency Code | Symbol |
Albania Lek | ALL | Lek |
Afghanistan Afghani | AFN | ؋ |
Argentina Peso | ARS | $ |
Aruba Guilder | AWG | ƒ |
Australia Dollar | AUD | $ |
Azerbaijan Manat | AZN | ₼ |
Bahamas Dollar | BSD | $ |
Barbados Dollar | BBD | $ |
Belarus Ruble | BYN | Br |
Belize Dollar | BZD | BZ$ |
Bermuda Dollar | BMD | $ |
Bolivia Bolíviano | BOB | $b |
Bosnia and Herzegovina Convertible Mark | BAM | KM |
Botswana Pula | BWP | P |
Bulgaria Lev | BGN | лв |
Brazil Real | BRL | R$ |
Brunei Darussalam Dollar | BND | $ |
Cambodia Riel | KHR | ៛ |
Canada Dollar | CAD | $ |
Cayman Islands Dollar | KYD | $ |
Chile Peso | CLP | $ |
China Yuan Renminbi | CNY | ¥ |
Colombia Peso | COP | $ |
Costa Rica Colon | CRC | ₡ |
Croatia Kuna | HRK | kn |
Cuba Peso | CUP | ₱ |
Czech Republic Koruna | CZK | Kč |
Denmark Krone | DKK | kr |
Dominican Republic Peso | DOP | RD$ |
East Caribbean Dollar | XCD | $ |
Egypt Pound | EGP | £ |
El Salvador Colon | SVC | $ |
Euro Member Countries | EUR | € |
Falkland Islands (Malvinas) Pound | FKP | £ |
Fiji Dollar | FJD | $ |
Ghana Cedi | GHS | ¢ |
Gibraltar Pound | GIP | £ |
Guatemala Quetzal | GTQ | Q |
Guernsey Pound | GGP | £ |
Guyana Dollar | GYD | $ |
Honduras Lempira | HNL | L |
Hong Kong Dollar | HKD | $ |
Hungary Forint | HUF | Ft |
Iceland Krona | ISK | kr |
India Rupee | INR | ₹ |
Indonesia Rupiah | IDR | Rp |
Iran Rial | IRR | ﷼ |
Isle of Man Pound | IMP | £ |
Israel Shekel | ILS | ₪ |
Jamaica Dollar | JMD | J$ |
Japan Yen | JPY | ¥ |
Jersey Pound | JEP | £ |
Kazakhstan Tenge | KZT | лв |
Korea (North) Won | KPW | ₩ |
Korea (South) Won | KRW | ₩ |
Kyrgyzstan Som | KGS | лв |
Laos Kip | LAK | ₭ |
Lebanon Pound | LBP | £ |
Liberia Dollar | LRD | $ |
Macedonia Denar | MKD | ден |
Malaysia Ringgit | MYR | RM |
Mauritius Rupee | MUR | ₨ |
Mexico Peso | MXN | $ |
Mongolia Tughrik | MNT | ₮ |
Moroccan-dirham | MNT | د.إ |
Mozambique Metical | MZN | MT |
Namibia Dollar | NAD | $ |
Nepal Rupee | NPR | ₨ |
Netherlands Antilles Guilder | ANG | ƒ |
New Zealand Dollar | NZD | $ |
Nicaragua Cordoba | NIO | C$ |
Nigeria Naira | NGN | ₦ |
Norway Krone | NOK | kr |
Oman Rial | OMR | ﷼ |
Pakistan Rupee | PKR | ₨ |
Panama Balboa | PAB | B/. |
Paraguay Guarani | PYG | Gs |
Peru Sol | PEN | S/. |
Philippines Peso | PHP | ₱ |
Poland Zloty | PLN | zł |
Qatar Riyal | QAR | ﷼ |
Romania Leu | RON | lei |
Russia Ruble | RUB | ₽ |
Saint Helena Pound | SHP | £ |
Saudi Arabia Riyal | SAR | ﷼ |
Serbia Dinar | RSD | Дин. |
Seychelles Rupee | SCR | ₨ |
Singapore Dollar | SGD | $ |
Solomon Islands Dollar | SBD | $ |
Somalia Shilling | SOS | S |
South Korean Won | KRW | ₩ |
South Africa Rand | ZAR | R |
Sri Lanka Rupee | LKR | ₨ |
Sweden Krona | SEK | kr |
Switzerland Franc | CHF | CHF |
Suriname Dollar | SRD | $ |
Syria Pound | SYP | £ |
Taiwan New Dollar | TWD | NT$ |
Thailand Baht | THB | ฿ |
Trinidad and Tobago Dollar | TTD | TT$ |
Turkey Lira | TRY | ₺ |
Tuvalu Dollar | TVD | $ |
Ukraine Hryvnia | UAH | ₴ |
UAE-Dirham | AED | د.إ |
United Kingdom Pound | GBP | £ |
United States Dollar | USD | $ |
Uruguay Peso | UYU | $U |
Uzbekistan Som | UZS | лв |
Venezuela Bolívar | VEF | Bs |
Viet Nam Dong | VND | ₫ |
Yemen Rial | YER | ﷼ |
Zimbabwe Dollar | ZWD | Z$ |
Conclusion
Undoubtedly, a currency is a money in any form when it is used or circulated as a medium of exchange, especially notes and coins. Generally speaking, Currency is a system of money in everyday use, particularly for the people of a nation. Therefore, in the 21st century, the value of currencies continues to fluctuate concerning other currencies, and the currency exchange market exists as a means to profit from these currencies.