The Importance of International Currencies

November 9, 2020 dotcomwomen

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The international community consists of many nations. Each nation has an economical ecosystem. Within that ecosystem, the nation functions with a particular currency. The United States uses the US dollar. The United Kingdom uses the pound. France uses the euro, and the list goes on.

The Importance of International Currencies

If you are into finances, it is important to know about the different world currencies. If you like to travel, you must have knowledge of the currency of the nations you are visiting. The currency of your native country can increase or decrease depending on where you visit. According to the Dinar Chronicles, the Kuwaiti dinar is over three times the value of the US dollar. So, if you plan on traveling to the Middle East, make sure you have a wallet full of money.

If the world only had one form of currency, many businesses would disappear. There are investors and banks that generate tons of revenue based on the contrasting values of the world’s currencies. Businesses that import and export goods depend on the world’s currency values. There are markets that operate similarly to the stock market that trade currencies instead of stocks.

Below is a list of some of the most common currencies in the world. If you plan on traveling, this information can be useful. If you plan on investing, this knowledge can spark your journey.

The US Dollar

The US dollar is the standard that all world currencies are measured against. The currency code for the US dollar is USD. The US dollar is made of a special blend of 75 percent cotton and 25 percent linen. The US prints $541 million a day. Most of the bills printed are used to replace older ones.

The Iraqi Dinar

The Iraqi dinar was created in 1932. The Iraqi dinar replaced the Indian rupee. A dinar is broken down into 1,000 fils. Inferior quality control was used to print the Iraqi dinar during the Saddam Hussein era, so counterfeiting was rampant during that time. The new Iraqi dinar is printed by a firm in England. The new bills have many security features. Bills include braille to help the visually impaired.

The Euro

The euro is used in 19 different European countries. The first physical bills for the euro were made in January 2002. The euro is divided down to 100 cents just like the US dollar. One of the main differences between the US dollar and the euro is that the euro has a twenty cent coin and a two-cent coin. The euro does not have a quarter coin. All the other coins of the euro are the same as the U.S coins.

The Japanese Yen

The Japanese yen has so many security features it is almost impossible to counterfeit. The bills are printed with luminescent ink that glows under ultraviolet light. The yen is the third most traded currency in the world. One yen coin weighs one gram. One hundred US dollars equals 10,747 yen. The yen was created in 1871, and the word yen means round object.

The British Pound

The British pound is also known as the sterling or the pound sterling. Currently, the British pound is equal to 1.32 US dollars. The British pound is the oldest known form of currency. The name of the pound comes from the Latin word “Libra,” which represents the scales for checks and balances. The Giant is a single note of one million pounds. The Titan is a single note of 100 million pounds.

The Swiss Franc

The currency code for the Swiss franc is CHF. Nicknames for the franc are Stutz, Stei, Liber, and Frankler. The Swiss franc is a very stable form of currency. The franc is almost worth its weight in gold. Many investors like to trade their money into francs because of the stability it maintains during volatile times.

The South African Rand

The currency code for the South African rand is ZAR. The ten, twenty, fifty, one hundred, and two hundred rand bill has a picture of Nelson Mandela on them. The nickname for a bill with Mandela’s face on it is called a “Randela.”