All About World Currencies

By Stanley Gill

Tags: just for fun

All around the world, people use different kinds of money. Most countries print their own money, which is also called currency. Money is also called legal tender. Legal tender is something that must be accepted as payment when you buy something.

Major World Currencies

The United Nations recognizes 180 separate currencies around the world. Some major currencies are used in only one country, while others are used in many different places. One example is the British pound, the currency of the United Kingdom. Currently, it's the fourth most used type of money in the world. Before World War II, it was also most commonly used in international trade. The United States dollar is currently the type of money most used in international transactions. It's the legal tender of the United States, but other countries (like Panama and Ecuador) also use it as their official currency. The European Union issues the euro, which most countries in the EU use as their official currency; it's the second most used type of money in the world. The yen is the official legal tender of Japan and is currently the third most traded currency on Earth.

Exchange Rates

People traveling to other countries need to trade some of their home currency for the legal tender of the country they are visiting. This is done using something called an exchange rate. The exchange rate determines how much one kind of money is worth in another kind of currency. For example, a person traveling to Japan would want to get yen. The exchange rate might be that one dollar equals 114 yen. This means that exchanging $100 would get the traveler 11,400 yen. Exchange rates also allow people to used their credit cards in other countries: The credit card company automatically converts the amount you spend into your home currency using the exchange rate at the time. Exchange rates change frequently. Travelers can look them up on the Internet to see the most current rates. It's also important to remember that different places can charge different fees and might even use a different exchange rate, so it can be smart to shop around!

The Gold Standard

Most money used today consists of paper bills. Years ago, the value of these pieces of paper was backed by gold: A certain amount of paper money would always be worth a certain amount of gold, and you could exchange your currency for gold at any time. But that meant that every country had to have enough gold on hand to equal the value of the amount of money it printed. Today, countries no longer use money backed by gold. Instead, money keeps its value based on the strength of the country that issues it.

List of World Currencies

Afghanistan: Afghani
Armenia: Dram
Australia: Australian dollar
Bahamas: Bahamian dollar
Brazil: Real
Brunei: Brunei dollar
Canada: Canadian dollar
Chile: Chilean peso
China: Yuan
Costa Rica: Costa Rican colon
Cuba: Cuban peso
Czechia: Koruna
Denmark: Krone
Ethiopia: Birr
Fiji: Fijian dollar
France: Euro
Germany: Euro
Greece: Euro
Hong Kong: Hong Kong dollar
Hungary: Forint
India: Indian rupee
Indonesia: Rupiah
Iraq: Iraqi dinar
Israel: New shekel
Italy: Euro
Japan: Yen
Jordan: Jordanian dinar
Kenya: Kenyan shilling
Laos: Kip
Madagascar: Ariary
Malaysia: Ringgit
Mexico: Mexican peso
Netherlands: Euro
New Zealand: New Zealand dollar
Norway: Krone
Pakistan: Pakistani rupee
Philippines: Philippine peso
Poland: Zloty
Russia: Ruble
Saudi Arabia: Saudi riyal
Singapore: Singapore dollar
South Africa: Rand
South Korea: Won
Spain: Euro
Sweden: Krona
Switzerland: Swiss franc
Taiwan: New Taiwan dollar
Turkey: Turkish lira
United Arab Emirates: Dirham
United Kingdom: British pound
United States: American dollar

Fun Facts About World Money

The first coins were used about 2,500 years ago.
China was the first country to print paper money.
The first credit card was issued in the United States in the 1920s.
Queen Elizabeth II's face has been printed on the currency of 33 different countries.
Although a lot of former presidents are pictured on U.S. money, some non-presidents (like Benjamin Franklin and Alexander Hamilton) are also pictured.