World Currencies Key Terms

Learn the global language of money

By Lori Carver

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.

Euro

Euro is the currency of many European companies.
Try: 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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.
Try: The US Department of the Treasury answers questions concerning legal tender of US currency.