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Introduction

Wondering how many currencies there are in the world? There is an answer to this question, but it is more complicated than you might think. We have prepared for you a list of the most interesting news about currencies. You will learn, among other things, what are the most important currencies in the world and what a currency is.

The number of currencies in the world

According to official data, there are currently 190 countries in the world. According to the United Nations report, this gives as many as 180 officially recognized currencies. The number of 180 currencies also includes those currencies that do not have an independent exchange rate. After eliminating these types of monetary systems, 130 world currencies remain.

In addition to the currencies recognized by the United Nations, there are many other monetary systems in the world. One of the proposals of semi-official countries may be the Scudo of Malta, which is used by members of the Sovereign Order of Malta. If we come into possession of this type of unofficial currency, we must be especially careful, because they are rarely recognized as official means of payment.

Concepts such as the dollar, euro, and pound are very well known to everyone. However, it is worth knowing that there are also other, not very popular currencies, whose names we may have never met before. Some of these unusual currencies include Bolivians, Cedi, Dalasi, and many others. However, we cannot say that these types of currencies are less important. It is true that the US dollar or the euro is of great importance in the financial market, but even minor currencies can be of great importance to the inhabitant of a given country.

The useful information is that one of the requirements for a currency to be acceptable is that it must be a medium of exchange. However, not all currencies can be exchanged with each other. This is regulated overriding by the respective country. In addition, each currency must also be a means of settlement and means of settlement for international transactions.

There are some poor countries as that currently have no value that have to look closely  

A well-known alternative to the standard currency today is cryptocurrency. It is a virtual coin that is not considered legal tender by most countries. The most popular type of cryptocurrency is bitcoin. Currently, there are several months of variations of the virtual coin in the financial market. This impressive amount is mainly due to the fact that a digital currency can be created by an individual. In addition, this type of virtual money can be used by anyone interested in this topic.

Table of Contents:

1. The number of currencies in the world

2. World currencies

3. Local currencies

4. Top 10 currencies in the world

5. What is the oldest currency in the world?

6. The popularity of the Polish currency

7. Currency - what is it?

World currencies

Number of currencies in the world: 180

Most popular currency: US dollar

The number of local currencies in the world: is about 5000

Oldest currency: pound sterling (British)

Most expensive currency: Kuwaiti dinar

Cheapest currency: Venezuelan bolivar

Local Currencies

The local currency is characterized by the fact that it does not have government support and often does not have the right to be a means of payment. These types of currencies are accepted in a limited area where finances are usually in turmoil. Where did local currencies come from? Historically in the 19th and 20th centuries, during economic and economic crises, many banks tried to control the need for money and created alternative money. Over time, such transitional measures sometimes became the national currency.

Currently, the most common form of local currency is company vouchers, which employees receive as the equivalent of their pay. There are currently around 5,000 local currencies available in the world. 

The most popular of them are:

• Eusko – the currency of the French Basques

• Fureai kippa – Japanese currency for seniors

• Lewes pound – local currency from Lewes in the UK

• Calgary Dollar - local currency from Calgary, Canada

• Wörgl – German local currency from the interwar period

Local currencies often come in the form of chips, vouchers, gift cards, or money in the online gaming world. In Poland, most people still remember the times of the People's Republic of Poland, when PeKaO bills played the role of the local currency. In most cases, it has been assumed that local currencies are strongly related to the national currency.

It is worth knowing that we will not get local currencies in exchange offices because only official national currencies are available there. Some currencies we will never be able to use. How it's possible? This is because some of them are used only as financial instruments. They are used for accounting and creating international statistics. In addition, the fact that they are used only for bank calculations means that they do not have a physical form.

Top 10 currencies in the world

There are the 10 most important currencies in the world in terms of percentage of turnover:

1) US dollar (USD)

It is the currency of the United States of America. The US dollar is the most essential currency in the world. According to BIS data, in 2019 over 88% of all currency transactions in the world were carried out with this currency. It is worth knowing that not only in the United States is the US dollar used - it is also officially valid, among others, in El Salvador, Ecuador, Micronesia, and several other countries.

2) Euro (EUR)

While traveling around Europe, most of us have surely noticed that the euro is valid in all European Union countries that have decided to adopt this currency (there are as many as 19 members states out of 28). In addition, it is the second currency in the world that is most often used in monetary transactions.

3) Japanese Yen (JPY)

The podium is closed by the currency officially used in Japan. How it's possible? First of all, due to the fact that the Japanese economy and economics strongly influence the purchasing power of this currency. Available data from April 2019 informs that the Japanese yen was responsible for almost 17% of all transactions in the world.

4) Pound Sterling, or British Pound (GBP)

The UK's exit from the Eurozone has not yet taken place, which is why the British pound is the country's official currency. Its strong position among world currencies is mainly influenced by the monetary policy of the central bank, the scale of unemployment and the level of GDP.

5) Australian Dollar (AUD)

Although the percentage of the Australian dollar in global reserve currencies is just under 2%, it is one of the most important currencies in the world. This official currency of Australia gained its strength thanks to the country's thriving exports of coal, copper and steel. In addition, Australia is a country that occupies a leading place in importing crude oil. An interesting fact is that it was the Australian dollar that was the first currency in the world that was produced in a plastic form.

 

6) CAD - Canadian Dollar

It is the currency used in Canada, which was created as a result of the currency chaos prevailing in this country in the 17th and 18th centuries. It is called the younger brother of the American dollar, among others. due to a similar division of denominations and the $ symbol. Moreover, the exchange rate of this currency is strongly dependent on Canada's cooperation with the United States. This is due to the fact that it exports over 75% of its raw material resources to the USA.

7) CHF - Swiss franc

Like the Canadian dollar, it is a relatively young currency and was created to organize various local currencies. It is the official currency unit in Switzerland and Liechtenstein. Switzerland is famous for its high level of banking services and stable monetary economy - thanks to this, the Swiss franc is described as a stable and strong currency.

8) CNH – Chinese Renminbi

It is the currency of the People's Republic of China, which also has the abbreviation RMB. Due to the fact that China conducts strongly developing trade with other continents, the position of this currency is very strong. At the same time, the Chinese renminbi does not have a high exchange rate, which is an advantage for this country. Why? Thanks to the low exchange rate of the renminbi, exporting goods from China is more profitable.

9) SEK - Swedish Krona

It is the currency used in Sweden, but due to the strong development of cashless payments in this country, it is difficult to find the krona in the form of a banknote or coin. It is worth noting that Sweden also uses the euro, but due to the exchange rate of the Swedish krona, it is the dominant currency in this country. Sweden conducts a very dynamic export of cars and engines, which feeds the country's economy and makes the Swedish krona a favorable exchange rate.

10) NZD - New Zealand Dollar

The last currency on this list is New Zealand. An interesting fact is that the popular name of this currency among local residents is "kiwi", which comes from a well-known bird living in this country. It may seem that it is not very popular, but the predictable exchange rate of this currency makes many investors interested in it.

What is the oldest currency in the world?

The oldest currency in the world is the pound sterling. Its common, more familiar name is the British pound. Interestingly, the first coins of this currency were in use as early as 775 in Anglo-Saxon times. The first prints of banknotes date back to 1853. In what form did they appear before printing? The Bank of England issued bank notes which had the stamp "?" and the first digit. Each subsequent digit had to be entered by hand, after which the bank clerk signed off each note.

The official international symbol for the feint is GBP. The first two letters are the abbreviation of the country's name - Great Britain, while the letter P stands for the English name of the pound - pound. Where did the second part of the name of this currency, sterling, come from? It was created to distinguish the monetary unit from the weight unit. The word sterling means "highest fineness" and is a reference to silver.

As we mentioned in our article, the pound takes third place in the ranking of the most important world currencies. Its percentage share in banking transactions in the world is almost 9%. Importantly, sterling is used not only in Great Britain but also in Gibraltar, the Falkland Islands, and other British colonies.

Currently, the exchange rate of the British pound is not as stable as before. Its fluctuations are mainly due to events related to Brexit, i.e. the process of Great Britain leaving the European Union. These changes lead to the pound now being perceived by some as the currency of emerging countries.

The issuer of this currency is the Bank of England, which regulates the supply of this money. It is interesting that only since 1946 this bank has belonged entirely to Great Britain. As we have already mentioned, the pound sterling is not exclusive to the UK. Its presence in the British colonies means that regional banks can also be issuers. Importantly, the money produced in regional banks differs visually from those issued by the Bank of England.

There are currently plans to replace paper banknotes with plastic ones. The Bank of England believes such notes would be much more resistant to any damage and more difficult to counterfeit.

 

 

Currency - what is it?

Currency is money that is valid in a particular country. To be accepted as a currency, it must be a means of settlement and a means of payment. In addition, it should be a means by which savings can be collected, a medium of exchange, and also a means of international exchange. A monetary unit that cannot be exchanged for other currencies cannot be called an international currency.

 

The important information is that each currency has its own separate name and abbreviation. The abbreviated name of the denomination consists of three letters, of which the first two denote the country in which the given currency is valid, and the last letter is the initial of the currency. This three-letter code has been officially accepted by the International Organization for Standardization.