There are over 150 major currencies of the world out there, each with a frequently changing value in relationship to other world currencies. Whether you do business with international clients and need exchange rates, or you invest and need stock-related information regarding major world currencies, or you're traveling and need to convert dollars to foreign currencies, it's important to understand the basics of currencies from around the world.

There are three main areas of interest to the average U.S. citizen investigating world currencies: the euro (since most Americans travel most often to Europe), the major world currencies (since they drive economic activity around the world), and the dollar, because the U.S. Dollar is still a standard for establishing the value of other currencies. In this guide, we'll look at how to:

1. Map the Euro and find out where it is used;

2. Evaluate the major currencies of the world and their values; and,

3. See the U.S. Dollar in a global light.

Action Steps
The best contacts and resources to help you get it done

Connect the dots to find out where the Euro is a major world currency

It's called the euro, so it must be used in Europe, right? Or at least in countries that are part of the European Union? It's not that simple; the euro is not used generally throughout Europe, but it's still one of the most powerful currencies of the world, and well worth studying.

I recommend: Learn "Why 13 Countries Use the Same Money" at University Credit Union, which provides a list of euro-using nations and a brief history of the currency. Go to CoinMill.com to convert euros to dollars and back again, and see photos of euro notes and coins at ASIATravelTips.com.

Bank on the strength of the major currencies of the world

Of those 170 or so world currencies, which are the strongest, most stable, and most easily traded? Foreign currencies are judged by many standards, including their U.S. Dollar reserve, economic growth, and low inflation. Different currencies are judged the strongest at different times, but the same contenders are always in the race.

I recommend: Know your world currencies basics by starting with a list of world currencies from The University of British Columbia Sauder School of Business. Get one reliable ranking of the Top 30 World Currencies at Exchange-Rates.org. Learn how five major world currencies are ranked at "What's the strongest currency in the world?," from BloggingStocks.

Appreciate the dollar in its role as an international currency

The United States took a long time to establish -- and really use -- the dollar as its official currency. Federally minted dollars were not enforced as currency until the Civil War. But, the world picked up on the U.S. Dollar right away, and despite the growth of other national economies, the U.S. Dollar remains a currency standard for the world.

I recommend: Learn why the U.S. Dollar is world currency at Investopedia, which explains how other nations use or rely on U.S. greenbacks. At The New York Times you can read an article that details why foreign nations adopt the U.S. Dollar as their currency.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Three countries other than the U.S. use the actual U.S. Dollar as their currency: Ecuador, El Salvador and Timor-Leste. Eight countries compare the value of their currency directly to the U.S. Dollar: Bahamas, Barbados, Belarus, Belize, Bermuda, Hong Kong, Lebanon and Saudi Arabia.

If your business travel plans will take you to foreign countries, it’s best to decide how you’ll pay for goods and services abroad before you leave home. That familiar grocery store chant, “Paper or plastic?” is only part of the equation.

You’ll also want to be sure that your money will be easy to access and safe and the fees charged to get your hands on it will be kept to a minimum. This requires some attention to detail before you leave your home base. Don’t wait until you get to your destination to stumble through the mine field of dealing with another country’s legal tender.

To avoid hassles when you get there, you need to:

1. Know about the currency of the countries you’ll visit.
2. Decide about cash vs. plastic: how much and how many.
3. Take credit and ATM cards with the broadest access.
4. Look into the cash card option.
5. Record numbers and contacts.
6. Prepare for emergencies.

Action Steps
The best contacts and resources to help you get it done

Get smart about the money

Fumbling with fistfuls of strange-looking bills in an unfamiliar location is never a good idea. It’s best to know in advance what the currency looks like, the denominations you’ll be dealing with, and the current exchange rate.

I recommend: Before you travel, review pictures of the currencies you’ll encounter along the way. It also helps to know the name of the currency. Then check the current exchange rate. Consider carrying a currency converter to speed the process (bonus: this one is an alarm clock too!).

Know if your ATM card will work when you’re there

The Automated Teller Machine (ATM) is a convenience that exists almost worldwide, but just because you have an ATM card doesn’t always mean you’ll get the machine to spit out the cash. In many foreign locations, ATM keypads have only numbers, no letters, and many will accept only a four-digit Personal Identification Number (PIN). If your present card PIN is alphanumeric, you might need to change the PIN before you leave home; know before you go.

I recommend: Locate Visa and MasterCard ATMs worldwide.

Decide: what kind of plastic?

Just because you have a wallet full of credit cards doesn’t mean you should take all of them with you. Remove all but those cards that will do the most for you in the most places (best: two from two different banks). Then call the providing banks to (1) let them know that you’ll be traveling abroad so they don’t freeze your card for irregular activity and (2) ask about currency conversion fees to use the cards at your foreign destination. Also, make sure that your credit limit is adequate and check your card expiration dates.

I recommend: This Kiplinger guide tracks cards and fees, best to not-so-good. If you’re in the market for a new credit card, compare features at this Web site. If an ATM card is not an option, look into a preloaded bank card.

Decide: How much cash?

While the thought of traveling the world on plastic might sound appealing and carefree, it also might not be realistic. Even in major foreign cities, you’ll probably need cash for taxis and toilets, restaurants that don’t take your credit card (even if the sticker on the door says they do) and any number of small purchases. The question is, should you get the currency ahead of time or exchange it when you get there?

I recommend: Get some foreign cash ahead of time so you can avoid the high exchange fees at foreign airports. Ask at your local bank if they sell foreign currency (allow several days). If you’re an American Express card holder you can purchase currency online (travelers checks too) and have it delivered to your home. Wells Fargo customers have foreign cash options too.

Prepare for emergencies

It’s always smart to have phone numbers for your banking institutions, but that 800 number on the back of your card won’t work from a foreign destination. Ask your bank for a non-800 number before you leave home. Make sure you have a record of all important numbers (credit cards, passport, bank accounts, etc.) where you can access them if necessary

I recommend: Create a password-protected file of pertinent numbers on your computer and let someone at home know how to find it if necessary. Or sign up with an Internet service that will hold your data in an electronic safe deposit box.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some ATMs in foreign destinations are only open during banking hours.
• •  Because of increased theft of ATM card PINs, some banks have frozen access to ATM funds at foreign destinations. Ask your bank about this ahead of time.
• •  If you carry travelers checks, have them issued in the foreign currency. They’ll be easier to cash.
• •  Get travelers checks and make ATM withdrawals in larger denominations to reduce the number of overall fees you’ll pay.
• •  If you make purchases using a credit card, ask that the total be shown in that country’s currency, not US dollars. If you don’t, you might be charged an extra fee for the conversion to US dollars.
• •  Foreign hotels and rental car companies often put substantial deposits on credit cards. Make sure your credit limit is substantial enough to handle them, and make certain too that the deposit is removed so you’re not double-billed.
• •  If you’re an American Express Gold Card holder, you’ll have check-cashing privileges at many AMEX offices around the world.
• •  Resist the urge to exchange funds at airports, train stations, hotels and cash kiosks. You’ll get a much better exchange rate at an actual bank.

World currencies education and training is essential in this day and age of global communication. Managing foreign currency is often unavoidable in the business world and just like other aspects, currencies from around the world change constantly. Continuing education is required to stay up-to-date on major currencies.

World currency education and training is a broad subject containing a lot of information. Deciding what aspect of world currency you wish to focus on will help narrow down the training you need. Do you wish to learn about world currency as a whole or on Forex trading? Whatever your focus, general education on the global currency market involves:

1. Researching world currency basics as a starting tool for trading on Forex.

2. Understanding a major world currency player, the euro.

3. Consulting world currency charts to stay on top of the trends on major currencies of the world.

Action Steps
The best contacts and resources to help you get it done

Educate yourself with general information regarding world currency

Educating yourself on what each country's corresponding currency is and insight into a currency's particular history is a great way to overview the major currencies.

I recommend: Aneki.com offers a list of countries with their corresponding currency and abbreviation. Options A to Z offers a free class entitled, "Exploring the World of Currency" with additional classes on understanding currency quotes, using currency futures and the creation of exchange rates. ADVFN describes the history of world currency in general and provides links to detailed information about specific currencies.

Understand the euro, a major play in global currency

The euro is the legal tender for 13 countries including France, Italy and Germany. Next to the dollar, it's one of the major world currencies and a significant part of world currency training.

I recommend: Review the history of the euro at GoCurrency.com. Visit Information Please, a segment of Pearson Education, to find detailed information on the euro including the euro's denominations, value and more.

Review foreign currency charts to stay up-to-date on currency trends

Conversion charts are updated daily so consult these as an education tool to stay up-to-date with foreign currencies. Most people live in a place where only one currency is used, so it's important to include currency conversion information as a part of world currency training.

I recommend: CNBC pairs world currencies and provides up-to-date charts regarding exchange rates. Bloomberg.com displays a cross chart of the eight major currencies of the world. Another cross chart is available on The Financial Times along with currency performance charts.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Take advantage of FOREX training. The foreign exchange market tracks currency trends and has information on major world currencies as well as provides currency overviews by country.

World currencies are the monetary systems that a country uses to do business within that country. Governments exchange money when they purchase foreign goods and businesses exchange money with other countries when they do business with them. Since there is no one world currency, governments in every country agree to exchange goods and services according to exchange rates. Know how this affects your dollars if you will be conducting business outside of the US, and find out what the monetary lingo means to make the most of your dollars.

Action Steps
The best contacts and resources to help you get it done

Euro

Euro is the currency of many European companies.

I recommend: iLibrary provides information on the Euro, including some details about its history. Africa Recovery offers information about the Euro.

Major world currencies

Major world currencies are simply the currencies of the most financially stable and active countries in the world, including the US dollar. Stock traders need to know the rate of exchange between the major world currencies to make their daily trades.

I recommend: Bloomberg offers a chart of the eight major world currencies. Exchange Rates offers a chart with the exchange rates of 30 major world currencies.

Inflation

Inflation refers to the fact that the prices of products tend to rise over time for the same amount of product. Inflation in regards to world currencies means that inflation can devalue various currencies, changing the so the rate of exchange.

I recommend: Investopedia offers information about inflation and how it affects the dollar.

Currency converters

Currency converters allow a person or business to convert a currency to any other currency with a simple online tool. These are useful tools whether you're doing business with clients in other countries, or whether you need to determine pricing for your goods in another currency.

I recommend: XE provides a handy currency converter tool to calculate exchange rates between world currencies. The website also provides instructions on how to use the tool.

Forex trading

Forex, or foreign exchange market, is a trading platform for world currencies.

I recommend: Forex Capital Markets provides detailed information about trading in this market. Global Forex Trading provides information about Forex trading.

Legal tender

Legal tender refers to the government standing behind the currency it issues. For example, the dollar is legal tender in the US. All countries world currency is legal tender within that country.

I recommend: The US Department of the Treasury answers questions concerning legal tender of US currency.