World Currencies – At a Glance
In simple words, Currency can be defined as any kind of money that can be circulated or used as a medium of circulation and exchange.
It can be in the form of coins as well as banknotes.
It can also be defined as a monetary system used in a nation by its inhabitants.
Some of the examples of currencies of different countries may include currencies like Dollar of the US,
Euros of European Union, pound Sterling of the UK and Yen of Japan, etc.
These different types of currencies are also considered as a medium to store value and they can be traded
in the forex markets between different countries through their banks as well as individuals. In this way,
the boundaries of acceptance of these currencies are defined by the governments of those nations.
Brief history of currency
There is a long history of currency. Initially, various types of metals were used as the symbol of currency to store value while buying commodities.
This type of currency was used in Fertile Crescent for more than 1500 years as the basis of trade.
But lack of an authentic place to store value the Eastern Trading system collapsed.
Then it was assumed that the value of the medium of circulation should be sound enough equally to the forces protecting it.
Thus the security of trade depended upon the reliability of the forces.
Safe passage for merchants near the Eastern Mediterranean, from Mycenae and Minoan Crete to Bahrain and Elam was established
in the Late Bronze Age based on a series of treaties.
It is assumed that copper ingots produced in Cyprus in the shape of ox-hide might be used as currency at that time.
But the end of the trading system of ox-hide ingots is supposed to be due to raids produced by the Peoples of the Sea and increasing incidents of piracy.
In the 10th and 9th centuries BC, the recovery of Phoenician trade became the source of the emergence of real coins and the return of prosperity.
Croesus of Lydia in Anatolia followed by the Persians and Greeks may be the first in producing coins.
Many types of items were used as stores of value in Africa like ingots, beads, various types of weapons, ivory,
the manila currency, ochre and livestock as well as oxides of earth etc.
one of the currencies used in West Africa from the 15th century onwards was manila rings that were used to trade slaves.
How many currencies are used in the world?
According to a UN observer, the member states of the United Nation use 180 types of currencies as their legal tender.
But if the currencies with a fixed rate of exchange are excluded from the total number of currencies then only 130 independent
currencies are in circulation throughout the world.
The total number of states may also include unrecognized as well as partially recognized states as well as their dependent states.
The currencies used in these states may or may not be the same used in the countries administering them.
List of currencies in circulation
There is a long list of currencies used in different countries.
Some of the most commonly used currencies are listed here under for your consideration.
|Name of state||Currency name|
|United Kingdom||Pound Sterling|
Though there are many currencies in the world but some of the currencies are used in various countries.
Brief information in this regard is provided here under for your consideration.
Use of Dollar in many countries
Besides the USA, Dollar is the name of the currency of many countries all over the world.
Actually, many forms of Dollars are used as the national currencies of 22 countries in the world.
These dollar currencies include the Australian Dollar of Australia, the Spanish dollar of Spain,
the Bahamian dollar of The Bahamas, the Belize dollar of Belize, the Barbadian dollar of Barbados,
the Brunei dollar of Brunei, the Bermudan dollar of Bermuda, Canadian dollar of Canada,
the Guyana dollar of Guyana, the Fijian dollar of Fiji, the Jamaican dollar of Jamaica,
the Hong Kong dollar of Hong Kong, the Namibian dollar of Namibia, the Liberian dollar of Liberia,
the Singapore dollar of Singapore, the New Zealand dollar of New Zealand, the Surinamese dollar of Surinam,
the Solomon Islands dollar of Solomon Islands, the Trinidad and Tobago dollar of Trinidad and Tobago,
the Taiwanese dollar of Taiwan, the Zimbabwe dollar and Eastern Caribbean dollar.
Use of US dollar in many countries
The countries that use the US dollar as their official currency may include Ecuador, East Timor, Federated States of Micronesia,
El Salvador, Palau, Marshall Islands, Panama, and the Caribbean Netherlands.
There are a number of other places throughout the world where the US dollar is accepted even if they do not use it as their legal tender.
Some of the countries and tourist places where the US dollar can be used at retirement sits and tourist destinations like Mexico, Canada, Barbados,
Commonwealth of the Bahamas, Bermuda, Belize, the Cayman Islands, Cambodia, Liberia,
parts of Costa Rica, panama, Nicaragua, Republic of the Union of Myanmar, Philippines,
major cities of Vietnam, the old city of Jerusalem and Curacao, etc.
Other currency is used in different countries
The Euro is another currency that is widely used in various countries.
Countries in which the Euro is used officially as legal tender include Belgium, Austria, Estonia, Cyprus, France, Finland, Greece, Germany, Italy,
Ireland, Lithuania, Latvia, Malta, Luxemburg, Portugal, San Marino, Spain, Slovenia and Slovakia. Apart from these 19 countries, some other
countries have also adopted the Euro as their official currency like microstates of Europe as Monaco, Andorra, Vatican City, and San Marino.
The Euro has also been adopted as a real currency by Montenegro and Kosovo.
Euro has also been adopted by various OCT or overseas counties and territories of the member countries
of the European Union like Dhekelia, Akrotiri, Saint Barthelemy, Saint-Pierre-et-Miquelon and French
Southern and Antarctic Lands. Some of the overseas departments like Guadeloupe, French Guiana, Reunion,
and Martinique have also adopted the Euro as their official currency.
Thus the world of coins and currency is very vast and complicated to
understand still billions of dollars are traded every day in
foreign exchange markets all over the world.
Written By : YOUSSEF J A ALMEER
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