Currency

A currency is an officially valid currency of a country. Examples of major currencies: euro , US dollar , British pound and Japanese yen . Official currencies of countries included in the ISO 4217 . For a list of official currencies, see list of currencies . There are also non-country-specific currencies such as bitcoins . These virtual currencies not listed in the official ISO country list.



Contents
*1 Currency and currency  ==Currency and currency [  edit ] == The term currency or coin is virtually synonymous with currency. However, there is a difference. The following example illustrates this.
 * 2 Private and foreign currency
 * 2.1 Currencies old and new
 * 2.2 Use currency of another country
 * 2.3 Joint currencies
 * 3 Currencies Politics
 * 4 Speculating with currency
 * 5 See also


 * A company in Europe for example, owns 5,000 euros to inventories, 40,000 yen in the bank and $ 550 cash. Then they have about 8250 euros in assets, expressed in the currency 'euro', or $ 10,030, denominated in the currencies 'dollar'. A currency can be converted into another, without having to exchange real money.
 * However, the 5000 Euro stocks is not considered part of the company's currency. Currencies only the amount in cash (in this example, the currency held by the Company is 40,000 yen and $ 550).

The currency is mainly a unit of account, while currency refers to money. ==Private and foreign currency [  edit ] == We distinguish the domestic currency (of the country) and foreign currency (from abroad). Foreign currencies are the foreign currency calculated.

The existence of different currencies in international trade leads to the need for exchange to establish. At fixed exchange rates exist by the monetary authorities controlled fixed exchange ratios between the different currencies. Long before the introduction of a common currency (the euro ) in a large part of the European Union, they tried to make the prices fluctuate within a certain range. The currency in the world by 2006===[Old  and new currencies edit <span class="mw-editsection-bracket" style="color:rgb(85,85,85);">]  === ===Use currency of another country <span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[  edit <span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Each country has its own currency in principle, but used in some cases, the currency of another country. This may be the case if it is a small country that uses the currency of a neighboring country. One example isLiechtenstein, which uses the Swiss franc. Also, one can in such a case does have its own currency whose value is linked to that of a neighboring country. This is in Luxembourg been the case, the Luxembourg franc was pegged to the Belgian franc. Outside Europe, the Lesotho Loti, the Namibian Dollar and Swazi Lilangeni 1: 1 linked to the South African rand .
 * Dinar, currency of Serbia
 * Dollar, currency of several countries, including the US Dollar
 * Drachma, until 2002 currency of Greece
 * ECU, to 1999 unit of account of the European Community
 * Escudo, until 2002 currency of Portugal , now the currency of Cape Verde
 * Euro since 2002 currency of the European Union, from 1999 to 2002 unit of account of the European Union
 * Forint, currency of Hungary
 * Frank, until 2002 currency of Belgium , Luxembourg and France ; now the currency of Switzerland
 * Mark, until 2002 currency of Germany and Finland
 * Gulden, until 2002 currency of Netherlands
 * Irish pound, until 2002 currency of Ireland
 * Crown, currency of some Northern and Eastern European countries
 * Lira, until 2002 currency of Italy
 * Litas, 2014 currency of Lithuania then the Euro
 * Peseta, until 2002 currency of Spain
 * Pound sterling, the currency of Britain
 * Ruble, currency of Russia , and also (a separate ruble ) from Belarus
 * Schilling, to 2002 currency of Austria
 * Tolar, from 1991 to 2007 currency of Slovenia
 * Flemish pounds, to about 1795 currency of the County of Flanders and the Duchy of Brabant
 * Złoty, the currency of Poland

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Another situation in which such a coupling is made by applying a (or at least pursues) occurs if one wants to take advantage of the economic reputation (and stability) of that other currency. In 2004 this was the case with the Bosnian convertible mark, which had a fixed exchange rate against the euro, and for 1999 (non-cash euro introduction) had a fixed exchange rate against the German mark (D-Mark). The same applied to the Bulgarian lev . The Antillean guilder has a fixed relationship with the US dollar (1 USD = 1.78 ANG). ===Joint currencies <span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[  edit <span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Also, countries may decide to adopt a common currency. The most famous example is of course the euro , <sup class="reference" id="cite_ref-1" style="line-height:1;unicode-bidi:-webkit-isolate;">[1] a number of countries in Africa, the CFA franc, which has a fairly fixed exchange rate against the euro (and before that with respect to the French franc), <sup class="reference" id="cite_ref-2" style="line-height:1;unicode-bidi:-webkit-isolate;">[2] and a number countries in the Caribbean uses the East Caribbean Dollar . <sup class="reference" id="cite_ref-3" style="line-height:1;unicode-bidi:-webkit-isolate;">[3] ==<span class="mw-editsection-bracket" style="color:rgb(85,85,85);"><span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;font-family:sans-serif;">[Currency  Politics <span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;font-family:sans-serif;">edit <span class="mw-editsection-bracket" style="color:rgb(85,85,85);">]  == American dollar bill<p style="margin-top:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">It is quite common for monetary authorities to pursue a certain bandwidth around a reference rate. That bandwidth can vary from 15 percent to less than 1 percent. A close link was (before the introduction of the euro) by De Nederlandsche Bank pursued between the guilder and the D-Mark. A number in 2004 the European Union has acceded Member States apply such a link between their currencies and the euro.

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Large fluctuations in exchange rates are found detrimental in general because they complicate international trade (and according to some readings invite speculation). In international trade, the parties involved will have to ask themselves whether they should hedge the risk of currency rises or falls with futures . This may entail additional costs.

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Monetary authorities will strive, even if no formal link or bandwidth is used to keep fluctuations manageable, but the scale of the international currency markets it is often hardly feasible. A central bank can (sometimes in cooperation with other central banks) an unwanted increase or decrease in the price of a currency attempt to slow down by the market to sell or buy currency (this is known as intervention ), but this is so large sums of money involved that the effect is often very low. The "send report 'markets often seems to bear more fruit.

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">The impression is that there is a tension between the economic and the psychological aspects of an exchange: a "strong currency" is psychologically (and political) point of view worth pursuing, but exporters will find it undesirable if its products as a result of high exchange rate for foreign customers are too expensive. (It is noted that it is probably impossible to determine objectively "correct" exchange rate. Whether a price is high or low, often seems to be partly determined by emotions. See also the article exchange .)

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">The extent to which currencies can be exchanged varies from country to country. In many cases, the import and export of its own and foreign currency restricted. ==Speculating with currency <span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;font-family:sans-serif;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[  edit <span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] == <p style="margin-top:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Currencies are also used as an investment instrument. One currency is bought and another is paid. This means that always invested in a currency pair when speculating in currencies, and that depending on the expected price development in this currency pair is 'bought' (long) or sold (short). These speculations are placed on the FOREX market (short for Foreign Exchange).

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Just as options and futures is a currency pair leverage product, with a lever (with some brokers) up to 1: 400.

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:22.3999996185303px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px;">Unlike futures and options, there is no standardized FOREX contract, which regulates the conditions for speculation on currency pairs. Each broker is either a market-maker (with its own terms and conditions) if he is a 'introducing broker' for another / bigger FOREX broker. Each of these market makers are trying commands first time in his own customers to 'match' before he gives further instruction. This has as a consequence that the broker now and then has rates which differ from the rest of the market. This opens opportunities for arbitrage, which ultimately eliminates the differences. ==See also <span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;font-family:sans-serif;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[  edit <span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] ==
 * List of old currencies in the Low Countries
 * Currency Stabbing