The Kuwaiti dinar is the world’s strongest and highest valued currency.

However, not all the currencies have equal strength or value some are stronger and trade frequently in the foreign exchange markets. Currently, about 180 currencies are used across the globe and recognized by the United Nations.

Popular CurrenciesĪlmost every country has a unique currency, although some countries share common currencies. Another form of currency gaining popularity is virtual currency, a digital, unregulated currency issued and controlled by the developer. Fiat money is a currency issued by the government and not pegged on any commodity. Commodity money is money in the form of other items such as gold or silk, which can be used in buying other goods. For instance, a gold certificate representing the value of gold one has. Representative money is money printed on paper representing the value of an item or commodity. Currency ClassificationĬurrencies can be classified into three monetary systems representative, commodity, and fiat money. For instance, Nineteen EU member states use a common currency known as the euro (€). However, two or more countries can use one currency. Thus, a country may not use its currency in another country unless it is converted to the local currency at an exchange rate. Thus, a currency is a monetary unit used by the buyer to obtain goods or services from a seller. Money can be defined as any legal tender issued by the government and accepted as a payment for goods or services offered, taxes, and debt repayment. In general terms, a currency is a money in any form used as a medium of exchange, especially in coins and banknote forms. What Is A Currency? The evolution of currency. Around 600 BC, the first currency, the Mesopotamian shekel, appeared in Lydia (present-day Turkey). Hence, there was a need for a universally accepted buying and selling means.

But, this type of trade could not be sustained and led to several losses, especially for those who exchanged more valuable items for less ones. Goods and services were exchanged through the barter trade. However, in ancient times, there was no common medium of exchange like currencies. Basic economic activities like buying and selling, otherwise known as trade or commerce, dates back thousands of years.

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