Interesting Facts About Currencies

Currencies are units of account valued based on a nation’s export and import balance. For example, the value of United States dollar is always equal to the value of British pound. In simple terms, currency can be defined as the exact amount of exchange that one party receives from another party. A unit of currency can be derived from a country’s debt and currency reserves, current account balance, etc. The value of currency is generally determined by its relative strength against another country or by its historical performance.

Most often, the forex market is considered to be a marketplace for currencies. Currencies are traded in pairs. One pair is usually referred to as the base currency while the other pair is called the forward currency. Most major currencies are traded in pairs. Currencies quotes often fluctuates accordingly with respect to other major currencies.

Among the major currencies traded in the forex market, the strongest currency most often is the Swiss franc (often referred to as the EUR/CHF). Other major currencies traded include the Japanese yen ( yen ), Australian dollar ( AUD), Eurodollar ( euro), Swiss franc, Canadian dollar (CAD), Pound Sterling (GBP) and the Swiss Franc. The most important fact about currency quotes is that they are always influenced by the political and economic factors of a particular country. One example is the peg of the Swiss franc with the European Central Bank (ECB). Another interesting facts about currency quotes is that they are rarely identical from one country to another. So if you want to know how much is one US dollar against another US dollar, you should keep this fact in mind because the exchange rate rarely stays identical from one trading day to the other.