Currencies and Exchange Rate
Definition
Currency is any resource with easy and immediate access, which can be used to settle debts, carry out monetary transactions, be widely accepted and provide the holder with the right to purchase products and services.
Following are some definitions for the term “currency”:
- Banknotes made of paper or polymer;
- Metallic coins;
- Bookkeeping or banking currency;
- Coins in a macro (broad) sense, can represent all money in circulation in a country;
- Everything that is accepted in exchange for goods and services (exchange currency).
Currencies are issued and controlled normally by a central figure (government), who is responsible for managing to fix and control the value.
Currency Converters:
ISO 4217 is a standard established by the International Organization for Standardization (ISO), which in order to facilitate and end confusion between a large number of currencies called "dollar", "pound" and others called "franc" (and all with different values), defined a three letter code to represent the currencies in each country.
Below are some examples of codes and their corresponding countries:
| # | Code | Currency | Country in circulation |
|---|---|---|---|
| 1 | USD | US Dollar | United States |
| 2 | CAD | Canadian Dollar | Canada |
| 3 | AUD | Australian Dollar | Australia |
| 4 | BRL | Brazilian Real | Brazil |
| 5 | GBP | Pound Sterling | United Kingdom |
| 6 | EUR | Euro | Countries participating in the European Union |
| 7 | JPY | Yen | Japan |
| 8 | SEK | Swedish Krona | Sweden |
| 9 | DKK | Danish krone | Denmark |
| 10 | NOK | Norwegian Krone | Norwegian |
| 11 | CHF | Swiss Franc | Switzerland |
Currency quotes and exchange rates
Represents the price of a foreign currency in relation to a currency in another country. It reflects the cost and strength of one currency relative to another.