Currencies – What Are They?

In layman’s terms, Currencies are money in its purest form-the coin or currency that has been issued by a government and that is usually recognized internationally for its unit value. But a currency by another definition is money that is not in circulation or use as a medium of trade, especially circulating foreign coins and banknotes. It usually sells for more on the open market than it costs to produce. This is because it circulates freely throughout the country, unlike goods or services which are usually produced and consumed within a nation-state.

Currencies are normally issued by a nation-state which can be a central economic unit such as the Federal Bank of the United States, The Bank of Japan, The European Central Bank, The Bank of Canada, The Reserve Bank of Australia or The New Zealand Monetary System. Other nations can issue their own national currency. Some other names for the national currency are the’steroid currencies’ and the ‘block currencies’.

Money in general is defined as the transfer of one monies from one seller to another on the market for exchange. Monetary money, including banknotes, coins, legal tender notes, bank transfers and checks, are all forms of currency. But in the case of Currencies there is a difference between legal tender and coins because the latter are legal tender only when they are in circulation and circulate as legal tender within a country. Whereas, in a legal tender note, the legal tender is given after a debt has been paid in order to enable the payment of the debt.