By Cedric Welsch
Foreign currency may be the only way for you to trade. This is particularly true if you are a tourist or a businessman for a multinational company. Thus, you should know the currencies before you go to your next journey. Here are some of the currencies you will commonly meet:
Euros, Pounds and Francs
The euro is the currency of the eurozone, which consists of seventeen European Union members. The euro is one of the strongest currencies in the world, being used by most of the Old World and backed by so many treasuries that it is very hard to devalue. Despite this, some countries in the European Union still do not use the Euro. These countries are the UK, Switzerland, Sweden and Denmark. The most prominent of these currencies are the British Pound Sterling and the Swiss Franc. Both are reliable reserve currencies.
US Dollar
The US dollar has been the benchmark of international currencies since the Bretton Woods system was inaugurated. The US Dollar replaced gold as a standard since it is the strongest unit at that time. Even after the abolition of the Bretton Woods system, the dollar is still the prevalent unit of international trade. There are already chinks in the dollar armor, so to speak, and it is currently being devalued.
BRICS Currencies
BRICS stands for Brazil, Russia, India, China and South Africa. These countries are seen as the emergent powers in the world. Their currencies are gaining significance since they have agreed to trade in each others currencies. Their currencies are real, the ruble, the rupee, the renminbi and the rand, respectively. While these currencies are today seen as weaker, they may gain value as time passes by, and as these countries further develop and mature into full-blown economies.
The Won and the Yen
The won and the yen are the currencies of Korea and Japan, respectively. These two currencies should be given a close watch since these economies are extremely emergent and will be able to be an economic powerhouse. The problems of these currencies are their relative weakness to foreign currencies, due to the effects of inflation. In fact, the won is one of the worst in terms of inflation, with the smallest denomination being the ten won coin. The yen on the other hand is widely used as a reserve currency and is very stable with regards to its value. However, the units are very inflated.
About the Author
Several distinguished trading info sources bring highly factual forex news on a regular continual basis. Certain numbers of the so called forex scams are still existing in the modern world of trading.
