Thursday, September 23

Currency – Do you know what’s the biggest?

Some people say that money makes the world spin. Whether you believe it or not, there is no doubt that it is important and useful to have knowledge about the world currency.

In the same way English has become an international language, the US dollar has become an international currency, although there is no official global currency. The world economy – production, debt – all are measured and compared to dollars by business and world leaders. Global commodities such as oil and gold are valued in dollars on the market.

However, in recent years, other currencies have come to rival important dollars. This is the euro, a new currency made by European Union countries to act as a common currency in Europe. Although some countries, especially Britain and Sweden, have not joined the single currency, it seems that all UE members (and future members) will join the next decade or more.

Outside these two big currencies, there are many others. 175 currencies are officially recognized by the United Nations – some large and established, some are not clear and a little use. In the modern world, though, it is easy to convert any currency that you use for almost everything else by using currency exchange, such as in banks or bureaus changes. Even though you might need to give them notifications to get more unusual currencies, almost all world currencies must be available to you in the currency market, even though they can be expensive.

How many of the currencies you can get for others are measured on the market using exchange rates. Just like the stock market, the exchange rate fluctuates depending on the number of currencies sold or purchased at one time. This means that several times are better than others for currency transactions, and that also means that it is too easy to find that the currency you hold has been worth far less than you expected. If in doubt, the best thing to do is to convert money back to your original currency and then put it in a savings account that defeats inflation, because this will tend to beat the currency market fluctuations.