In general, currency is a medium of exchange for goods and services. You can say that it’s money, in forms like coins and paper which is usually issued by the government. It is crucial that it is generally accepted at its face value as a method of payment. With the wide usage of computers and the Internet, digital currency has risen in popularity. 

As we are discussing the foreign currencies, do you know that forex trading is also becoming popular in the last few years? Forex trading is where currencies are traded. The people involved in this market vary in their fields – they could be involved in commercial banks, institutions and retail investors. As for the Indonesian, you should see this indonesia forex trading brokers if you are interested or if you want to try forex trading.

The Modern Currencies.

As we all know, the currency units differ by countries. Malaysia uses MYR, Indonesia uses Rupiah, the USA uses the United States Dollar (USD), Andorra uses European Euro (EUR) and Japan uses yen. So how exactly are these currency units organised? The currency used is based on the concept of lex monetae; that a sovereign state decides which currency it shall use. Wondering what is this lex monetae?  It is a Latin phrase which means that a sovereign state chooses which currency it will use. Also, the meaning of units of above-mentioned currency is determined by the law of the country whose money is in question. 

Local Currencies.

Explaining this in terms of economics, a local currency is a currency that can be spent in a particular geographical locality at participating organisations. Local companies aim at achieving social or environmental objectives. This currency comes with a lot of benefits, one of them is being able to encourage the community to use the existing productive resources, especially unemployed labor that affected the local economy.  

One of the interesting parts of local currencies is the company scrip. It can be defined as a scrip in which is a substitute or government-issued legal tender or currency. It is commonly issued by a company to pay its employees. An estimated 75% of all scrip was used by coal companies in Kentucky, Virginia and West Virginia. The tokens were very amusing as it was made out of a variety of metals. Some of them are copper, zinc, brass and nickel. The colors of the tokens were very pretty and they seemed aesthetic enough to be a collection. During World War II, the coins were made of compressed fibres as an attempt to conserve metals for the creation of war’s weapons.

Fictional Currencies

Yes, something like that existed. So what are fictional currencies? A fictional currency is some form of system of money defined, depicted, or alluded to, in works of fiction, such as novels, films or video games. This is very common in fictional novels as some authors really love doing their world-building where the country or universe does not necessarily exist in real life. An example is the money used in the Harry Potter series by J.K Rowling and the Dragonlance world of Krynn where steel coins are the primary currency and are more valuable than gold by weight.

Final Words

I hope this has been interesting to you and helps in gaining new knowledge about the simple things we have been using in our everyday lives. These are exactly everything you should know about currencies. I think the most part of the currencies is the fictional currencies where they are not even used in real life. However, the value of it is still the same when you read through the book. 

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