What Are Currencies?
Currencies are money in the simplest sense money in any shape, when in circulation or use as a medium of trade, particularly circulating coins and banknotes. Currencies can be derived from a country’s currency and are usually issued by central banks. The most widely traded currencies are US dollar (USD), Canadian dollar (CAD), British pound (GBP), Swiss franc (CHF), Japanese yen (JPY), the New Zealand dollar (NZD) and Euro (EUR).
Most countries issue their own national currency, which is then exchanged against other currencies. This process of exchanging currencies is called forex trading. Currencies can also be derived from a country’s currency and are usually issued by central banks in combinations with other currencies. For instance, a CDU (Federal Reserve of United States) is a popular name for US dollars with other currencies being similar to this such as the Australian Dollar (AUD), Canadian dollar (CAD), British pound (GBP), Swiss franc (CHF) and Euro (EUR).
When talking about Currencies, it is important to understand that they have a variety of definitions and are not the same thing as monies. For instance, a Chinese Renminbi (RMB), an Indonesian Rupiah (IDR), or a Mexican Peso (MXM) would not all be considered a single currency. There are a wide variety of international money which can be traded across countries. Examples include: Euro (EUR), the United States dollar (USD), Singapore dollar (SGD), the New Zealand dollar (NZD), Canadian dollar (CAD), Japanese yen (JPY), Swiss franc (CHF), and Euro (EUR).